Boeing Drops 3.3% Amid 737 MAX Legal Uncertainty

The Boeing's stock price dropped 3.3% in pre-market trading on April 3, 2025, amid ongoing legal discussions with the U.S. Department of Justice regarding the 737 MAX aircraft.

Boeing CEO Kelly Ortberg has revealed that the company is in discussions with the U.S. Department of Justice to modify a previous plea agreement related to the 737 MAX aircraft. This agreement was reached in 2021 following two fatal crashes involving the 737 MAX in 2018 and 2019. The discussions come after a recent incident in January 2024, where a 737 MAX aircraft experienced a cabin door detachment during flight, leading the Department of Justice to accuse Boeing of violating the 2021 agreement. Despite an attempt to reach a new plea agreement in May 2024, the judge did not approve it, setting a court date for June 23, 2025, if no agreement is reached.

Ortberg, who took over as Boeing's CEO in August 2024, emphasized the company's commitment to resolving the issue promptly. He stated that Boeing and the Department of Justice are actively working to modify the agreement and hope to reach a consensus soon. The ongoing legal uncertainties surrounding the 737 MAX aircraft continue to cast a shadow over Boeing's stock performance, as investors closely monitor the developments in the case.