Judge rejects Boeing 737 Max settlement

Published On Dec 5, 2024, 2:06 PM

A US judge has rejected Boeing's proposed plea deal related to the fatal crashes of its 737 Max planes that killed 346 people. The deal, which included a guilty plea to one count of criminal fraud and a $243 million fine, was deemed insufficient by Judge Reed O'Connor. He criticized the previous monitoring efforts of the Department of Justice (DOJ) as ineffective and expressing concern over how the proposal lacked accountability for Boeing. The ruling is seen as a victory for victims' families, who oppose what they perceive as lenient treatment of the company.

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Stock Forecasts

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The rejection of Boeing's plea deal could lead to further legal battles and a tougher stance from the DOJ, potentially increasing costs and operational uncertainty for the firm. This ruling might affect Boeing's short-term stock performance negatively as it raises concerns about ongoing litigation and financial liabilities.

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