On Friday, August 15, 2025, Business Insider reported that a judge, who had previously traded Boeing stock, had been removed from a significant case involving the aerospace company following a pro-Boeing ruling.

Judge James Robart, who presided over Zunum Aero’s lawsuit against Boeing, had disclosed his stock trades during the proceedings. He attributed the trades to a bank managing his wife’s retirement account and asserted that they did not influence his judicial decisions. However, an appeals court recently reversed his earlier ruling and indicated that the circumstances surrounding his stock transactions raised concerns about his impartiality.

The appeals court’s ruling reinstates a $72 million verdict against Boeing, which had been previously set aside by Robart. The court stated that the timing of the judge’s disclosure, coupled with his consistent decisions favoring Boeing, could lead an objective observer to question his neutrality. This decision was issued by the US Court of Appeals for the Ninth Circuit.

Zunum Aero, a company that has faced financial difficulties since 2019, accused Boeing of undermining its efforts to secure funding. The company was working on a hybrid-electric passenger aircraft, which it intended to launch in 2022, with plans to expand its offerings through 2030. Zunum claimed that Boeing and its affiliate, HorizonX, misappropriated its trade secrets, leading to the jury’s $72 million award.

Despite the jury’s finding, which also included a separate judgment of $9 million against Zunum for breach of agreements with HorizonX, Robart had voided the larger verdict. The appeals court criticized his handling of the evidence, stating he had failed to consider substantial proof of Boeing’s misconduct and Zunum’s damages adequately.

As the legal battle continues, Zunum has expressed concerns about the potential sale of its intellectual property, fearing it could be undervalued. The company has incurred approximately $27 million in legal fees, payable if it wins. The ongoing disputes center around whether Zunum will be compelled to divest its patents to settle financial obligations to HorizonX.

 

 

Source: Business Insider