Global aerospace giant Boeing (NYSE:BA) has agreed to pay $200 million as settlement charges related to the two fatal crashes of 737 MAX jets in 2018 and 2019. Further, Boeing’s former CEO, Dennis Muilenberg, will pay $1 million as part of the total settlement.
According to the U.S. Securities and Exchange Commission (SEC), Boeing and its former CEO allegedly made misleading statements to investors regarding the safety of its 737 Max jets.
Gary Gensler, Chairman of the SEC stated, “The Boeing Company and its former CEO, Dennis Muilenburg, failed in this most basic obligation. They misled investors by providing assurances about the safety of the 737 MAX, despite knowing about serious safety concerns.”
All 346 crew members on board were killed in the crash that took place in Indonesia and Ethiopia. Following the crash, the 737 MAX was suspended and heavily investigated. It resumed operations two years ago.
Related to the same crashes, Boeing paid fines of $2.5 billion following the criminal probe made by the Justice Department in 2021.
What is the Target Price for Boeing Stock?
As per TipRanks, Boeing stock has an average price target of $218.91, implying a 57.82% upside potential from current levels. The stock commands a Strong Buy consensus rating based on 11 Buys and two Holds.
Notably, BA stock has a Top-notch Smart Score of a “Perfect 10” on TipRanks. Further, BA stock has a very positive signal from hedge fund managers, who added 1.1 million shares during the last quarter.
Boeing is making efforts to completely resolve all the outstanding legal matters related to the 737 Max accidents. Such incidents have eroded Boeing’s market value by billions of dollars and can be a huge setback for the company.
Hopefully, Boeing’s enhanced efforts to improve its safety and quality will ensure that similar accidents do not recur in the future.
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