Aerospace company Boeing (BA) is reportedly reconsidering its guilty plea in the two fatal crashes of its 737 MAX aircraft. According to the Wall Street Journal, Boeing is seeking a softer stance from the Justice Department under President Donald Trump as the new administration is reviewing several ongoing criminal cases. In July 2024, the company pleaded guilty to criminal charges tied to these crashes. The report also stated that if Boeing is permitted to revoke its plea deal or face a less severe penalty, it would showcase the Trump administration’s lenient approach to white-collar crime enforcement.
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Boeing’s Legal Battle Continues
Boeing initially agreed to plead guilty to fraud last July after the U.S. Justice Department found that the company had failed to strengthen its compliance and ethics program. The agreement was reached in January 2021 as a response to the tragic crashes in Ethiopia and Indonesia, which claimed 346 lives.
However, in December 2024, a Texas judge rejected the settlement, citing issues in the selection process of an independent monitor responsible for overseeing Boeing’s compliance. This decision forced both the company and the government to revisit negotiations.
Now, Boeing could see potential changes in its legal standing, as the Justice Department under Trump is reportedly considering modifications to the agreement, according to The Wall Street Journal. Currently, Boeing and the Justice Department are discussing potential changes to the plea deal, with a revised proposal expected to be submitted to U.S. District Judge Reed O’Connor by April 11. One key issue under debate is whether Boeing can bypass the requirement to hire an independent monitor to oversee its compliance.
Is Boeing a Good Stock to Buy Now?
Amid all the legal drama, analysts have a Moderate Buy consensus rating on BA stock based on 15 Buys, four Holds, and one Sell assigned in the past three months. Meanwhile, the average Boeing share price target of $197.83 per share implies a 9.4% upside potential.
