Boeing Judge Traded Company Stock During Case Against It

Federal Judge James Robart has admitted to trading Boeing stock while he was hearing a case against the company, a case in which he dismissed a $72 million verdict against it....
Boeing Judge Traded Company Stock During Case Against It
Written by Matt Milano

Federal Judge James Robart has admitted to trading Boeing stock while he was hearing a case against the company, a case in which he dismissed a $72 million verdict against it.

Judge Robart presided over a case involving Zunum Aero, an electric aircraft startup that had sued Boeing, accusing the larger company of IP theft. The jury in the case awarded Zunum a $72 million verdict, which Judge Robart proceeded to throw out.

The judge told Business Insider that a bank managing his wife’s IRA had purchased Boeing stock for her portfolio while the trial was ongoing. He added that the family sold the stocks as soon as he discovered the issue, more than a year before the verdict was handed down.

Experts told BI the judge should have disclosed the conflict immediately, but doubted it would be enough for Zunum to appeal the case.

“Whether the remedy would be that — after he quickly did it and did the ‘oops’ — whether he should announce it to the parties,” said Bill Hodes, a retired law professor. “I don’t know.”

Similarly, Gabe Roth, of the group Fix the Court, said Robart did what he was supposed to do, since the law allows judges to sell shares of a company’s stock in order to preside over a case.

“I think he probably should’ve mentioned this to the parties,” Roth told BI.

Robart told the outlet he originally thought his wife’s IRA account was being handled like a mutual fund, a popular option among judges since it avoids exactly these type of scenarios. It wasn’t until the Boeing purchase he realized that wasn’t the case, and the couple have since moved her account back to Charles Schwab to avoid further issues.

“I’m trying pretty hard to abide by the rules,” Robart told BI.

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