Boeing’s plea deal for 737 Max crashes is rejected in court

Boeing’s (NYSE:BA) plea deal with U.S. prosecutors in connection with two fatal crashes of 737 Max jets on Thursday was rejected by a federal judge, Bloomberg News reported. The ruling is seen as a setback for the plane maker’s plan to get past the criminal charges resulting from the crashes.

U.S. District Judge Reed O’Connor ruled in favor of family members of people killed in the crashes who had urged him to reject the agreement. The judge said the agreements stipulations for choosing an independent monitor improperly required considering the race of the appointed person appointed, and diminished his role in the process, Bloomberg News reported.

The judge asked both sides to discuss their next steps.

“These provisions are inappropriate and against the public interest,” O’Connor said in his ruling.

Boeing (BA) this year had agreed with the Justice Department to plead guilty to criminal conspiracy, pay a fine and establish an independent corporate monitor. The company also would have been required to spend at least $455 million to strengthen its compliance and safety programs.

Boeing’s (BA) stock was little changed on Thursday.