Boeing (NYSE:BA) faces renewed criminal push as 737 Max families reject nonprosecution deal.

Families of the 346 victims killed in the two 737 Max crashes are urging the U.S. Justice Department to ditch a proposed nonprosecution agreement with Boeing and proceed to trial on June 23 in Texas, calling the deal deeply flawed and a miscarriage of justice, according to a letter from attorney Paul Cassell.

Warning! GuruFocus has detected 6 Warning Signs with BA.

Federal prosecutors outlined options to families last Fridayincluding a plea deal, new conspiracy charges, or going to trialbut have yet to decide. Any resolution must win approval from Judge Reed O'Connor, who already scuttled Boeing's prior plea in 2021 over concerns about court oversight and monitor selection criteria. Boeing had pleaded guilty to misleading regulators on the MCAS system and agreed to pay penalties and invest $455 million in safety measures, but renewed safety incidents last year spurred prosecutors to recommend fresh charges.

Cassell warned that shielding Boeing from prosecution would deny victims accountability, and families plan to challenge any nonprosecution pact in court rather than negotiate further pretrial. Boeing reportedly sought to withdraw its guilty plea in March before the trial date was set.

Why It Matters Investors should watch for heightened legal and reputational risk that could drive fines, compliance costs and further delays in aircraft deliveries.737 Max Families Demand Criminal Trial for Boeing

Boeing is showing modest upside potential, with a 12-month price target average of $209.66, up 2.92% from current levels. The chart reflects a volatile past year, though recent momentum has brought shares near the target zone. Analysts see a high estimate of $256.20, while the low end sits at $140, highlighting a wide risk/reward range. The GF Value of $185.70 suggests the stock may be slightly overvalued in the near term. Overall, it's a cautious optimism play with upside tied to operational improvements and aviation demand recovery.

This article first appeared on GuruFocus.

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