Judge rejects Boeing 737 Max settlement

A Boeing plea deal intended to resolve a case related to two fatal crashes of its planes has been rejected by a US judge.

Boeing had originally agreed with the US government in July to plead guilty to one count of criminal fraud, face independent monitoring, and pay a $243m (£191m) fine.

However, Judge Reed O’Connor struck down the agreement on Thursday, saying it gave the court too little power in the oversight of the monitoring.

The decision comes after after years of legal battles stemming from the tragedies which killed 346 people in total.

In his ruling, Reed said the government’s previous years of monitoring the firm had “failed” and raised concerns about requirements that the parties consider race in hiring the monitor.

He also noted the objections brought by some families of the 346 people killed on the flights, who had criticised it as a “sweetheart” arrangement that did not properly hold the firm to account for the deaths.

On Thursday, lawyer Erin Appelbaum, partner at Kreindler & Kreindler, which represents 34 families who lost loved ones when Ethiopian Airlines Flight 302 crashed in 2019, praised the outcome.

“This is an excellent decision by Judge O’Connor and a significant victory for the victims’ families,” she said in a statement.

“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.”

Boeing and the Department of Justice did not immediately comment.

The two sides have 30 days to develop a new plan.