In a rare move, a federal judge on Thursday rejected Boeing’s proposed agreement with the Justice Department to plead guilty to conspiracy to defraud the federal government in connection with two fatal 737 Max crashes, according to court documents.
The plea agreement, reached in July, has been a flashpoint for controversy. It would have required Boeing to admit to deceiving the Federal Aviation Administration about critical safety issues tied to a flight control software implicated in both accidents. The crashes, a Lion Air flight in 2018 and an Ethiopian Airlines flight in 2019, killed a total of 346 people.
Judge Reed O’Connor, of the U.S. District Court for the Northern District of Texas, raised concerns on several levels about how the agreement had been handled, including a question about the independent monitor who was to determine if Boeing was abiding by the terms of the agreement. All parties have 30 days to decide how to proceed.
A spokeswoman for the Justice Department said the agency was reviewing the opinion. Boeing did not immediately respond to a request for comment.
Judge O’Connor’s ruling is another setback for Boeing and its shareholders, adding one more layer of uncertainty to the company’s future as it struggles to move past its legal issues stemming from the 737 Max crashes. The rejection of the settlement puts Boeing’s hopes of closing this chapter on hold.
Among the issues raised by Judge O’Connor during an October hearing in Fort Worth, Texas, was that accepting the proposed deal would stop him from levying penalties beyond those already laid out in the deal.
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