Boeing Could Avoid a Trial
A pivotal court decision could determine whether Boeing finally moves on from the 737 MAX crisis -- or faces another reckoning.
Boeing (NYSE: BA) has faced a multitude of tribulations over the past decade. But the company recently got a reprieve from a trial that would've been its biggest yet.
On June 2, U.S. District Judge Reed O'Connor removed Boeing's upcoming criminal trial from the docket, as the court considers a motion to dismiss a fraud case against the jet maker that stemmed from two deadly crashes (in 2018 and 2019) of 737 MAX aircraft. Investors are still awaiting the court's final decision, but things seem to be moving in a good direction. A crash of a Boeing Dreamliner last week in India knocked the stock down a bit, but it's up 14% so far this year.
Boeing had been set to stand trial, starting on June 23, for allegedly misleading federal regulators about a stability-control system in the 737 MAX that played a role in the crashes of Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019. In total, 346 passengers died in the plane crashes.
