Boeing (NYSE:BA) could potentially face criminal charges, according to a Reuters exclusive report. The report stated that U.S. prosecutors have recommended to Justice Department officials that criminal charges should be brought against the aerospace company. The Justice Department has until July 7 to decide whether to prosecute Boeing.
According to the report, the company and the Justice Department are discussing a potential resolution, and there is no guarantee that officials will file criminal charges against the company.
Trouble Brewing for Boeing
Earlier this year, the Justice Department determined that the company had breached the terms of a 2021 deferred prosecution agreement. This agreement had shielded Boeing from a criminal charge of conspiracy after the company’s 737 Max aircraft were involved in two fatal crashes in 2018 and 2019.
Under this agreement, Boeing was supposed to “design, implement, and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws throughout its operations.” However, the company failed to do so and, as a result, agreed to pay $2.5 million to settle the investigation.
Boeing, for its part, has previously stated that it has “honored the terms” of the 2021 deferred prosecution agreement, which had a three-year term. The company disagreed with the Justice Department’s finding that it violated the settlement.
Is BA a Good Buy Right Now?
Analysts remain cautiously optimistic about BA stock, with a Moderate Buy consensus rating based on 17 Buys, seven Holds, and two Sells. Year-to-date, BA has slid by more than 30%, and the average BA price target of $213.70 implies an upside potential of 19.6% from current levels.
