Judge rejects Boeing’s plea deal with DOJ, citing diversity issue

“The Court is concerned with the Government’s shifting and contradictory explanations of how the plea agreement’s diversity-and-inclusion provision will practically operate in this case,” O’Connor said in the 12-page decision. O’Connor’s concern appears to have stemmed from a previous request from the victims’ families asking that they have final say on who should monitor Boeing, “in keeping with the Department’s commitment to diversity and inclusion.” In October, O’Connor determined it was important to know how diversity policies, if a factor, still ensure “safety and compliance efforts as a result of Boeing’s fraudulent misconduct” and how the company’s internal focus on diversity and equity “impacts its compliance and ethics obligations.” In its response, DOJ defended its policies, repeatedly stressing that regardless of the broad pool of candidates considered for the role, it “must select and does select the most qualified candidate irrespective of race or gender, or any other non-merit factor.” In its own filing, Boeing at the time said the aerospace company “does not compromise on merit or talent in pursuit of those aspirations and has a merit-based performance system with procedures aimed at encouraging an equality of opportunity, not of outcomes,” adding that it strictly observes the law prohibiting discrimination and “does not employ racial quotas in hiring or promotion decisions.” Boeing did not immediately respond to requests for comment. Boeing first accepted DOJ’s terms in July, and O’Connor has been considering the petition since, a process that has included petitions from victims’ families to reject the plea and documents submitted by Boeing whistleblowers related to the crashes. Following the hearing, O’Connor, a George W. Bush appointee, in October said before he could rule, he’d need information from DOJ and Boeing on how much of a factor diversity practices would be in selecting a third-party monitor as part of the plea deal, and how diversity policies are applied in Boeing’s business practices.