$BA: Recovery Gains Traction — Yet $200M MAX Safety Settlement Still Clouds Outlook

Court: SEC

Case: 3-21140

Boeing’s BA commercial jet business is regaining investor confidence as production ramps up and its defense unit returns to profitability under new leadership. However, the $200 million settlement tied to the 737 MAX crashes continues to hang over the stock, reminding investors of lingering legal and reputational risks.

• 737 MAX production hit 38 planes per month, with plans to raise output to 42.
• Defense unit returned to profitability after leadership shakeup in 2024.
• $619 billion order backlog offers long-term revenue visibility.
• BA shares recently rose 2.5%, reflecting renewed optimism.
• Despite progress, legal overhang from 737 MAX remains unresolved.

Timeline Overview

• Oct 29, 2018: Lion Air Flight 610 crashed; Boeing omitted safety risks.
• Nov 2018–Apr 2019: CEO Dennis Muilenburg downplayed MCAS concerns.
• Mar 10, 2019: Ethiopian Airlines Flight 302 crashed, triggering global alarm.
• Mar 11, 2019: FAA grounded 737 MAX fleet; BA stock dropped ~10%.
• Apr 2019: Investors sued Boeing for concealing safety defects.
• Sep 22, 2022: Boeing agreed to a $200M settlement with SEC and investors.

Allegations Include

• Concealing MCAS system vulnerabilities.
• Misleading safety assurances post-first crash.
• Failing to disclose single-sensor reliance risks.
• Downplaying potential regulatory exposure.

Investor Update

Boeing agreed to a $200 million cash settlement with investors over the 737 MAX crisis. While execution improvements are helping BA stabilize, legal and reputational risks remain a drag on investor sentiment.

You can check more information about it and file for a payout HERE.