Boeing 737 MAX crashes plea deal rejected by judge over DEI requirement

A Texas judge has rejected the plea deal between Boeing and the Department of Justice in which the aircraft manufacturing giant agreed to plead guilty to conspiracy to defraud the United States and pay a fine of at least $243 million after the two 737 MAX crashes in 2018 and 2019.

Over 340 people died in the two crashes, the first of which occurred in Indonesia in October 2018 and the second five months later in Ethiopia.

U.S. District Judge Reed O’Connor rejected the plea deal due to requirements that the government's diversity, equity and inclusion (DEI) policies be considered when the government selected an independent compliance monitor for Boeing. At a hearing in October, the judge asked how the government and Boeing’s DEI policies would affect choosing the monitor.

“In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency," O'Connor wrote in his ruling. "The parties’ DEI efforts only serve to undermine this confidence in the Government and Boeing’s ethics and anti-fraud efforts. Accordingly, the diversity-and-inclusion provision renders the plea agreement against the public interest.”

The judge also took issue with language in the agreement that did not allow the court to have a say in selecting or supervising the independent monitor.

“It is fair to say that the Government’s attempt to ensure compliance has failed,” O'Connor wrote. "At this point, the public interest requires the Court to step in. Marginalizing the Court in the selection and monitoring of the independent monitor as the plea agreement does undermines public confidence in Boeing’s probation, fails to promote respect for the law, and is therefore not in the public interest.”

Boeing did not immediately respond to an ABC News request for comment on the ruling.

Families of the crash victims considered the judge’s decision a victory.

“Judge O’Connor has recognized that this was a cozy deal between the Government and Boeing that failed to focus on the overriding concerns – holding Boeing accountable for its deadly crime and ensuring that nothing like this happens again in the future,” said Paul Cassell, a lawyer representing families of the MAX crash victims, told ABC News. “This order should lead to a significant renegotiation of the plea deal to reflect the 346 deaths Boeing criminally caused and put in place proper monitoring of Boeing to ensure that it never again commits a crime like this in the future.”

"This is an excellent decision by Judge O’Connor and a significant victory for the victims’ families” said Erin Applebaum, a lawyer at the firm Kreindler & Kreindler, which represents 34 families of people who died on the Ethiopian Airlines flight. “We anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing’s crimes. It’s time for the DOJ to end its lenient treatment of Boeing and demand real accountability."

According to court documents, Boeing and the DOJ must update the court within 30 days regarding how they plan to proceed.