Boeing’s legal woes continue, with the rejection by a US judge of a plea bargain the airline had reached with the Department of Justice (DOJ) over two fatal plane crashes.
The deal, brokered in July 2024, would have seen the aircraft manufacturer plead guilty to Department of Justice fraud charges after not revealing software problems in their aircraft systems, as well as promising to invest in safety practices, becoming subject to independent monitoring – and paying a fine of $243 million.
But that limited accountability after hundreds of deaths on the company’s Max aircraft, and additional safety incidents including plane plug doors blowing out mid-flight and noses falling off on runways, have damaged public trust and angered justice campaigners.
A cosy sweetheart deal
The agreement between the DOJ and Boeing has been widely criticised as a “cosy”, “sweetheart deal” by crash victims’ relatives. They have called instead for criminal prosecutions and public trials for the Boeing executives they say are responsible for the deaths of their loved ones. If such a case were successful, Boeing could become liable for payouts up to an estimated $24.78 billion.
Now, Judge Reed O’Connor has struck down the deal on the basis of a diversity requirement for the monitoring board that would oversee Boeing’s operations. Judges rarely strike out deals that both parties have agreed to and, Reuters reports, where they do, its usually a sign that the judge wants to impose a harsher punishment. The wording of O’Connor’s dismissal, which branded the deal “not in the public interest”, and the fact its terms will have to be re-agreed, are being interpreted in some quarters as steps in that direction.
Calls to end “lenient treatment” of Boeing
Certainly, relatives and representatives of crash victims have welcomed the Judge’s opinion, calling it an “excellent decision and a significant victory” for the families. They are now looking forward to “a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing’s crimes,” according to Erin Applebaum of law firm Kreindler and Kreindler, who added: “It’s time for the [Department of Justice] to end its lenient treatment of Boeing and demand real accountability.”
While Boeing has not at the time of writing issued a comment, the Justice Department has already said it’s reviewing O’Connors ruling. The pair have been given 30 days to revisit the plea bargain and address the judge’s concerns, which included issues over the competency of monitors, how far Boeing would be held to the eventual safety monitors’ recommendations, and the way it limits judicial powers.
