On Thursday, August 22, 2024, Benzinga reported that Judge James Robart, who recently overturned a $72 million jury verdict against Boeing, said he had inadvertently traded the airplane manufacturer’s stock last year while presiding over the case.
In an interview, Judge Robart disclosed that his wife’s IRA account, which was managed by a bank without his involvement, had purchased and sold between $1,000 and $15,000 worth of Boeing shares in April 2023. When the judge later learned about the trades from a monthly statement, he promptly sold the stocks in May and June.
Robart described the stock transactions as a mistake and indicated he took immediate action to remedy the situation once he became aware. However, he did not inform the legal counsels for Boeing or the plaintiff, Zunum Aero, of the trades. Nor did the judge make any public statements about it, aside from the required financial disclosures.
When asked about possible impartiality concerns, Robart maintained the trades would not influence his judgment. He said it was possible the stock movements could affect the market but not his decision in the case.
Legal experts debated whether Robart’s actions constituted a technical ethics breach since the trades were inadvertent and he disposed of the shares promptly upon finding out. Most agreed the judge appeared to handle it appropriately by divesting himself of the stock, though one commented he should have notified the parties involved.
Meanwhile, Boeing continues to deal with various issues, such as structural defects in its new 777X jets and safety concerns that have prompted leadership changes. The company is also defending itself against litigation like the trade secret suit brought by Zunum Aero, in which Judge Robart overturned a substantial jury award against Boeing in June.
Source: Benzinga
