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Boeing Stock Dips Amid Deal Breach on 737 MAX Accident

On Tuesday, the US Department of Justice (DOJ) revealed that Boeing had violated its obligations under a 2021 deal, which led to the company’s stock decline.

The aerospace firm’s pre-market stock slid by -1.08% to $178.80 apiece on May 15.

According to reports, the settlement breach has covered the company from criminal prosecution linked to tragic 737 MAX crashes in 2018 and 2019, which led to 346 total casualties.

In a legal submission to a Texas court, the DOJ alleged that Boeing neglected to create, execute, and uphold a compliance and ethics initiative to stop and uncover breaches of US fraud statutes across its activities.

Analysts noted in a Tuesday report on the regulator’s decision that they view this scenario as the most possible outcome.

They also acknowledge that the range of potential results becomes more uncertain with the possibility of additional fines and the likely extension of the review period.

Experts further remarked that they refrain from assuming complete knowledge of Boeing’s possible liability in criminal prosecution.

Still, analysts consider it a distant secondary or tertiary concern compared to the company’s production obstacles.

This DOJ’s discovery followed a separate January incident involving one of its MAX 9 units, which revealed its safety and quality concerns days before the 2021 deal expired.

Commercial Jet Deliveries of Boeing Slid in April

Boeing revealed that it handed over 24 commercial jets last month, a dip by two from the 26 planes it delivered last month compared to last year.

Moreover, the airplane maker company has been working to boost production of its 737 MAX 9 after the January 5 accident.

Boeing also disclosed 33 monthly cancellations due to Lynx Air’s cease-operations, which accounted for 29 of the jets.

Meanwhile, analysts closely monitor the company’s deliveries, as plane makers can earn most of their revenue when selling jets to purchasers.

As of April 30, the Virginia-based firm’s backlog plummeted from 5,668 to 5,646.

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