• Home
  • News
  • Fortune 500
  • Tech
  • Finance
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
FinanceBoeing

Boeing’s plea deal over 737 Max jet crashes was rejected over DEI policies. Now the judge has set a June trial date

By
The Associated Press
The Associated Press
Down Arrow Button Icon
By
The Associated Press
The Associated Press
Down Arrow Button Icon
March 26, 2025, 8:38 AM ET
The Boeing factory, on Sept. 24, 2024, in Renton, Wash.
The Boeing factory, on Sept. 24, 2024, in Renton, Wash. Lindsey Wasson—AP

A federal judge in Texas has set a June trial date for the U.S. government’s years-old conspiracy case against Boeing for misleading regulators about the 737 Max jetliner before two of the planes crashed, killing 346 people.

Recommended Video

U.S. District Judge Reed O’Connor did not explain in the scheduling order he issued on Tuesday why he decided to set the case for trial. Lawyers for the aerospace company and the Justice Department have spent months trying to renegotiate a July 2024 plea agreement that called for Boeing to plead guilty to a single felony charge.

The judge rejected that deal in December, saying that diversity, inclusion and equity policies the Justice Department had in place at the time might influence the selection of a monitor to oversee the company’s compliance with the terms of its proposed sentence.

Since then, O’Connor had three times extended the deadline for the two sides to report how they planned to proceed. His most recent extension, granted earlier this month, gave them until April 11 to “confer on a potential resolution of this case short of trial.”

The judge revoked the remaining time with his Tuesday order, which laid out a timeline for proceedings leading up to a June 23 trial in Fort Worth.

The Department of Justice declined to comment on the judge’s action. A Boeing statement shed no light on the status of the negotiations.

“As stated in the parties’ recent filings, Boeing and the Department of Justice continue to be engaged in good faith discussions regarding an appropriate resolution of this matter,” the company said.

The deal the judge refused to approve would have averted a criminal trial by allowing Boeing to plead guilty to conspiring to defraud Federal Aviation Administration regulators who approved minimal pilot-training requirements for the 737 Max nearly a decade ago. More intensive training in flight simulators would have increased the cost for airlines to operate the then-new plane model.

The development and certification of what has become Boeing’s bestselling airliner became an intense focus of safety investigators after two of Max planes crashed less than five months apart in 2018 and 2019. Many relatives of passengers who died off the coast of Indonesia and in Ethiopia have pushed for the prosecution of former Boeing officials, a public criminal trial and more severe financial punishment for the company.

In response to criticism of last year’s plea deal from victims’ families, prosecutors said they did not have evidence to argue that Boeing’s deception played a role in the crashes. Prosecutors told O’Connor the conspiracy to commit fraud charge was the toughest they could prove against Boeing.

O’Connor did not object in his December ruling against the plea agreement to the sentence Boeing would have faced: a fine of up to $487.2 million with credit given for $243.6 million in previously paid penalties; a requirement to invest $455 million in compliance and safety programs; and outside oversight during three years of probation.

Instead, the judge focused his negative assessment on the process for selecting an outsider to keep an eye on Boeing’s actions to prevent fraud. He expressed particular concern that the agreement “requires the parties to consider race when hiring the independent monitor … ‘in keeping with the (Justice) Department’s commitment to diversity and inclusion.’”

“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 parties’ DEI efforts only serve to undermine this confidence in the government and Boeing’s ethics and anti-fraud efforts,” O’Connor wrote.

An executive order President Donald Trump signed during the first week of his second term sought to end diversity, equity and inclusion programs across the federal government. Trump’s move may render the judge’s concerns moot, depending on the outcome of legal challenges to his order.

Trump’s return to office also means the Justice Department’s leadership has changed since federal prosecutors decided last year to pursue the case against Boeing.

Boeing agreed to the plea deal only after the Justice Department determined last year that the company violated a 2021 agreement that had protected it against criminal prosecution on the same fraud-conspiracy charge.

Government officials started reexamining the case after a door plug panel blew off an Alaska Airlines 737 Max during flight in January 2024. That incident renewed concerns about manufacturing quality and safety at Boeing, and put the company under intense scrutiny by regulators and lawmakers.

Boeing lawyers said last year that if the plea deal were rejected, the company would challenge the Justice Department’s finding that it breached the deferred-prosecution agreement. O’Connor helped Boeing’s position by writing in his December decision that it was not clear what the company did to violate the 2021 deal.

Fortune Brainstorm AI returns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.
About the Author
By The Associated Press
See full bioRight Arrow Button Icon

Latest in Finance

Dell
Personal FinanceWhite House
Why the government is really going to give your baby $1,000, collecting interest until they turn 18
By Moriah Balingit and The Associated PressDecember 3, 2025
1 hour ago
Bessent
BankingFederal Reserve
‘We’re going to veto them’: Bessent backs new rules to give White House more power over Federal Reserve
By Christopher Rugaber and The Associated PressDecember 3, 2025
1 hour ago
Bessent
Economyphilanthropy
Scott Bessent labels the Giving Pledge a failure, says it only happened because billionaires feared ‘pitchforks’ amid massive wealth inequality
By Nick LichtenbergDecember 3, 2025
2 hours ago
William Stone
SuccessBillionaires
While Billie Eilish slams non-philanthropic billionaires, this CEO says telling people what to do with their cash is ‘invasive’ and to ‘butt out’
By Jessica CoacciDecember 3, 2025
2 hours ago
Scott Bessent
EconomyTariffs and trade
Scott Bessent is defiant on whether tariffs are a tax, demands Democrats work to cut actual taxes instead
By Nick LichtenbergDecember 3, 2025
2 hours ago
The SoFi logo on a blue frame.
Personal Financechecking accounts
SoFi® Bank, N.A. Review 2025: Digital Banking, High Yields
By Glen Luke FlanaganDecember 3, 2025
3 hours ago

Most Popular

placeholder alt text
North America
Jeff Bezos and Lauren Sánchez Bezos commit $102.5 million to organizations combating homelessness across the U.S.: ‘This is just the beginning’
By Sydney LakeDecember 2, 2025
1 day ago
placeholder alt text
Economy
Ford workers told their CEO 'none of the young people want to work here.' So Jim Farley took a page out of the founder's playbook
By Sasha RogelbergNovember 28, 2025
5 days ago
placeholder alt text
North America
Anonymous $50 million donation helps cover the next 50 years of tuition for medical lab science students at University of Washington
By The Associated PressDecember 2, 2025
1 day ago
placeholder alt text
Economy
Elon Musk says he warned Trump against tariffs, which U.S. manufacturers blame for a turn to more offshoring and diminishing American factory jobs
By Sasha RogelbergDecember 2, 2025
1 day ago
placeholder alt text
Success
Warren Buffett used to give his family $10,000 each at Christmas—but when he saw how fast they were spending it, he started buying them shares instead
By Eleanor PringleDecember 2, 2025
1 day ago
placeholder alt text
C-Suite
MacKenzie Scott's $19 billion donations have turned philanthropy on its head—why her style of giving actually works
By Sydney LakeDecember 2, 2025
1 day ago
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map

© 2025 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.