A federal judge rejected Boeing Co.’s plea deal that sought to let the planemaker avoid criminal prosecution over to two fatal 737 Max crashes, in a surprise twist that threatens to prolong the company’s recovery from past scandals.

US District Judge Reed O’Connor sided with family members of people killed during the crashes, who urged him to reject the agreement. O’Connor said provisions in the proposed settlement would improperly require race to be considered in the hiring of an independent monitor and that his role in making sure Boeing abides by the deal would be minimized.

“These provisions are inapprop

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