[A federal judge on Thursday rejected a plea agreement between Boeing and the US government after the company agreed to plead guilty to deceiving the Federal Aviation Administration ahead of two fatal 737 Max crashes. US District Court Judge Reed O’Connor cited problems with the selection process for an independent monitor required in the plea deal to oversee safety and quality improvement at Boeing.
Boeing agreed in July to plead guilty to one charge of conspiracy to defraud the United States and pay up to $487 million in fines. However, O’Connor was upset that the Justice Department, not the court, would have approval over the selection of the monitor and how Boeing had performed under an earlier settlement with the Justice Department.
The families of victims of the two crashes, which killed 346 people, argued that the fine amount was a sweetheart deal for Boeing and that the company’s previous profits would allow for a much larger fine. The families said they wanted a larger fine to reflect the seriousness of the crimes and to send a message to other corporations that engaging in similar conduct would result in severe penalties.
Boeing agreed to operate under the supervision of a government-appointed monitor for three years to improve the quality and safety of its aircraft. The company also agreed to spend $455 million on its compliance and safety programs over the next three years, which is a 75% increase over what it was spending annually.
The rejection of the plea deal is an important victory for the families, who argued that Boeing should be held accountable for the crashes. However, it’s unclear whether the families will be happier with any future plea agreement, as it will be negotiated by the Justice Department and Boeing in the incoming Trump administration.
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