Boeing: Up to $42 per Share Criminal Fine Looms With July 7 Deadline; Fair Value Estimate Still $221

In January 2021, in the aftermath of two Boeing 737 MAX 8 crashes in 2018 and 2019, Boeing reached an agreement with the US Department of Justice to forestall criminal prosecution for deceiving the FAA about its 737 design and software changes and paid a $2.5 billion fine. In May 2024, following the near-fatal door panel failure on a 737 MAX 9 flown by Alaska Airlines, the DOJ notified Boeing it believes the company had not complied fully with the earlier agreement and has until July 7 to notify the court whether and how it will resume criminal prosecution of the airplane maker. Barring up to $25 billion in fines, the DOJ may also impose increased supervision of the company's manufacturing and safety processes.