A U.S. judge on Thursday rejected Boeing’s agreement to plead guilty to fraud in the wake of two fatal 737 MAX crashes, faulting a diversity and inclusion provision in the deal.
Boeing did not immediately comment. The U.S. Department of Justice, which brokered the plea bargain with Boeing, is reviewing the opinion, a spokesperson said. Boeing and the DOJ’s options could include appealing the judge’s rejection of the plea deal or presenting a renegotiated agreement for court approval.
U.S. District Judge Reed O’Connor in Fort Worth, Texas, who has a record of ruling in favor of conservative causes, seized on a single sentence in the plea agreement mentioning the DOJ’s diversity policy regarding the selection of an independent monitor to audit the planemaker’s compliance practices. He had asked both Boeing and prosecutors to further brief him on it in October.
Boeing and the DOJ now have 30 days to update the court on how they plan to proceed in …