Judge Who Overturned Huge Boeing Verdict Admits He Was Trading Boeing Stock at the Time

Will this impact the appeal process?

Whoopsie

A judge who tossed out a huge settlement against Boeing admitted he had traded and sold Boeing stock while in charge of the case, according to Business Insider.

It's a situation that highlights how often officials end up with glaring conflicts of interest — all the way up to the Supreme Court, where Justice Clarence Thomas has run roughshod over typical norms, and Congress, where many lawmakers have made trades suspected of involving inside info.

Federal judge James Robart admitted to Business Insider that the financial institution managing his wife's retirement account bought Boeing stock last year, but he sold the shares — worth somewhere between $1,000 and $15,000 — as soon as he found out about them.

At the time, Robart was overseeing a lawsuit that aeronautic company Zunum Aero filed against Boeing for allegedly stealing trade secrets about an electric commuter plane Zunum had developed. But he never told either party about the stock purchase or sale.

In May, a jury penalized Boeing with a $72 million settlement in favor of Zunum, but Robart overturned the award, saying that Zunum didn't provide sufficient evidence that Boeing stole any trade secrets.

People's Court

Though the Robart stock situation raises eyebrows, legal experts speaking to Business Insider think it would not impact Robart's standing as judge or his judgement because it seemed the trades were accidental, and current laws don't disqualify judges under those circumstances.

While Zunum can bring this up in appeal, the decision may still stand, Gabe Roth, founder of nonprofit group Fix the Court, told Business Insider.

"I think he probably should've mentioned this to the parties," Roth did add.

In the case of Robart, this appears to be a one-time thing, unlike the situation with Justice Thomas who has a multi-decade habit of accepting gifts and other assets from influential people and then not disclosing them, an ethical minefield.

What's especially galling is that he has not been penalized yet, signaling to all that he's above the law.

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