A plea deal from Boeing Co (NYSE:BA, ETR:BCO) to resolve a legal matter related to two fatal crashes involving its airplanes has been rejected by a United States judge.
The Boeing 737 MAX crashes in 2018 and 2019, involving Lion Air Flight 610 and Ethiopian Airlines Flight 302, were caused by issues with the aircraft's MCAS system, inadequate pilot training, and regulatory oversight failures, leading to 346 fatalities and a global grounding of the fleet.
Back in July, Boeing had agreed with the US government to plead guilty to one count of criminal fraud, undergo independent monitoring and pay a $243 mine fine related to the crashes.
Judge Reed O’Connor in Fort Worth, Texas, on Thursday, however, rejected the agreement, citing a diversity, equity and inclusion provision (DEI).
O’Connor took issue with the deal’s requirements that race be considered when hiring the independent monitor, stating that this would undermine confidence in the person chosen.
"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," he wrote in the ruling. "The parties' DEI efforts only serve to undermine this confidence in the government and Boeing's ethics and anti-fraud efforts."
Boeing and the Department of Justice were given 30 days to update the court on how they plan to proceed on the matter.
The US Department of Justice said it is reviewing the judge’s opinion. Boeing did not immediately comment on the ruling.