Boeing's Plea Deal Uncertain Amid Judge's Focus on Diversity Policy

By Mike Spector, Nate Raymond, and Chris Prentice

(Reuters) – A Texas federal judge with a history of conservative rulings has introduced uncertainty into Boeing's plea agreement related to two fatal 737 MAX crashes, targeting a reference to the U.S. Department of Justice's (DOJ) diversity policy.

Last week, U.S. District Judge Reed O'Connor unexpectedly requested briefs from the parties regarding a section of the plea deal, which stipulates that the DOJ will adhere to its "commitment to diversity and inclusion" when selecting an independent monitor to oversee Boeing's safety and compliance practices.

Duncan Levin, a white-collar defense lawyer and former prosecutor, remarked, "It's incredibly unusual for a judge to zero in on a DOJ policy related to DEI like this—particularly in a criminal case involving such a major corporation."

Judge O'Connor is deliberating the approval of the plea agreement between the DOJ and Boeing, anticipating a decision soon. The deal requires Boeing to plead guilty to conspiring to defraud regulators regarding the crashes that resulted in 346 deaths in 2018 and 2019. The reference to the DOJ's DEI policy appears on page 26 of the 32-page document.

Victims' families have petitioned Judge O'Connor to reject the plea deal, asserting it fails to hold Boeing and its executives adequately accountable for their losses. They expressed concerns about the provision allowing DOJ officials, in consultation with Boeing, to choose the monitor but did not elaborate on DEI-related objections.

Chris Moore, whose daughter died in the 2019 Ethiopian Airlines crash, considers the DOJ diversity clause a "minor issue" but opposes the plea deal on grounds of insufficient corporate accountability. "The current plea agreement gives Boeing 'a do-over,'" he remarked. "My daughter didn’t get a do-over."

O'Connor, appointed by former President George W. Bush, has a record of conservative rulings and has challenged a range of government policies. This focus on DEI reflects broader cultural tensions in America, where such policies are debated between liberal and conservative circles.

Such policies aim to address bias and discrimination in employment, but critics argue they prioritize characteristics like race over job qualifications.

Complicating matters, the DEI issue has previously been raised concerning Boeing's safety practices, highlighted by an in-flight incident in January.

Legal opinions vary on whether the DEI provision could jeopardize the plea deal. Some believe O'Connor could justifiably reject it based on the Supreme Court's recent ruling against race consideration in college admissions. However, others feel that the matter isn't substantial enough to derail the agreement. Levin noted that O'Connor seems more inclined to assert a stance on DEI issues than to dismiss the plea on substantial grounds.