Boeing and the Department of Justice (DOJ) have been granted an extension to rework their plea agreement in the 737 MAX criminal case.
This decision comes after a federal judge rejected the initial deal due to concerns about a diversity and inclusion provision related to the selection of an independent compliance monitor.
Boeing and the DOJ are now working to “include revisions to the proposed plea agreement that would address the reasons the Court rejected it,” lawyers explained in a Friday court filing.
Progress of 737 MAX Case to Date
The 737 MAX, Boeing’s most popular aircraft, was grounded worldwide in 2019. The grounding came in the wake of two fatal crashes that claimed the lives of 346 people. Investigations revealed that the crashes were linked to a faulty flight-control system known as the Maneuvering Characteristics Augmentation System (MCAS).
Relatives of crash victims had urged the government to seek a more aggressive deal to hold Boeing to account for the deaths. They suggested that the alternative was consider taking the case to a full criminal trial.
Boeing initially agreed to plead guilty to a criminal fraud conspiracy charge. This would involve paying a substantial fine, and allocating funds for safety improvements. However, US District Judge Reed O’Connor in Texas rejected the deal, citing concerns about the proposed compliance monitor’s selection process.
The judge specifically objected to a provision that considered diversity and inclusion factors. This included race and ethnicity, in the selection of the monitor. He argued that these factors were irrelevant to the US aircraft manufacturer’s compliance obligations.
Time Extension to Mid-February
In response to the judge’s rejection, Boeing and the DOJ have been working on a revised plea agreement. The revision would seek to address the concerns raised by District Judge Reed O’Connor. They have requested an extension until mid-February to submit an updated proposal. The court has now approved this time extension.
The extension will allow the incoming Trump administration to participate in the final negotiations of the revised plea agreement. The change in leadership at the DOJ may necessitate further discussions and adjustments to the proposed deal.
Summary
The 737 MAX crashes have had a significant impact on Boeing’s reputation and financial performance. The company has been working to restore public trust and ensure the safety of its aircraft.
The revised plea agreement in the 737 MAX criminal case aims to address the concerns raised by the judge. It will ensure a fair and just resolution for all parties involved.
It now remains to be seen whether the new proposal will be accepted by the court. Hopes are high that this will finally bring a close to this long-running legal saga.
