Boeing Reportedly Seeks To Withdraw Guilty Plea In 737 MAX Cases: Retail Stays Bullish

Boeing (BA) stock garnered retail attention on Tuesday after the Wall Street Journal reported that the company is trying to withdraw an earlier agreement to plead guilty in a long-running criminal case that blamed the planemaker for deceiving regulators before two deadly crashes.

The report, citing people familiar with the matter, said that Boeing is seeking more lenient treatment from President Trump’s Justice Department, which is inclined to at least modify parts of the agreement.

Last year, Boeing agreed to plead guilty to a criminal fraud conspiracy charge related to the two fatal 737 MAX crashes.

The aerospace firm also committed to paying a fine of up to $487.2 million and investing $455 million over three years to improve safety and compliance practices, all under court supervision.

The two 737 MAX crashes claimed the lives of 346 people in 2018 and 2019.

If Boeing had gone ahead with the plea deal, it would have been branded a corporate felon.

The plea deal followed a DOJ investigation that found that Boeing had violated the terms of a 2021 probation agreement that protected it from criminal prosecution over the crashes.

The justice department then brought criminal proceedings against Boeing and negotiated the current plea deal before a federal judge rejected the agreement in December.

Retail sentiment on Stocktwits moved to ‘bullish’ (73/100) territory from ‘extremely bullish’(77/100) a day ago, while retail was ‘high.'

One retail trader said that investors do not like criminal trials, and the company would have benefitted by keeping or working out a deal.

Last week, the Trump Administration awarded the aerospace giant a contract to develop the next generation of fighter jets for the U.S. Air Force.

Boeing shares have gained 2.2% year-to-date (YTD).

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