A federal judge on Thursday rejected Boeing’s (NYSE:BA) plea deal tied to a criminal fraud charge stemming from fatal crashes of the manufacturer’s 737 Max aircraft.
U.S. District Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas expressed concern in his decision that the selection process for a government-appointed monitor, a condition of the plea deal, would be affected by diversity, equity and inclusion policies.
He wrote that “the Court is not convinced in light of the foregoing that the Government will not choose a monitor without race-based considerations and thus will not act in a non-discriminatory manner. In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency.”
The Justice Department is reviewing the decision, a spokesperson said. Boeing didn’t immediately comment.
In October, O’Connor ordered Boeing and the Justice Department to provide details on DEI policies that might affect the selection of the monitor.
The court gave Boeing and the Justice Department 30 days to decide how to proceed, according to a court document filed Thursday.
The beleaguered plane maker saw its stock increase in price $1.71, or 1.1%, to $158.38
