A federal judge in Seattle, who was overseeing a significant legal case that involved a $72 million verdict against Boeing, unintentionally traded stock in the same company while the case was ongoing.
Federal Judge James Robart disclosed that his wife’s IRA, managed by a bank, had bought and sold Boeing stock valued between $1,000 and $15,000 in April of last year, while the case was still active.
Upon realizing the conflict, Judge Robart promptly divested the shares, with financial records indicating the sales occurred in May and June. The case in question involves Zunum Aero, an electric aircraft startup, which accused Boeing of conspiring to deprive it of funding and misappropriating its plans. Despite a jury awarding Zunum $72 million, Robart later dismissed the verdict, citing a lack of substantial testimony regarding Zunum’s trade secrets.
Judge Robart characterized the stock trades as an unintentional error, stating that he took immediate measures to correct it. However, he did not inform the attorneys involved or publicly acknowledge the trades beyond the mandatory financial disclosures.
“There could be some market movement, but it’s not going to influence my decision,” Robart said.
This incident has emerged amidst heightened scrutiny of federal judges’ financial dealings, with recent reports indicating that 131 federal judges have violated ethics laws by not recusing themselves from cases where they or their family members held stock in involved companies. Although Robart was not named in these reports, he said that he was unaware of his wife’s IRA being part of a pooled fund that traded individual stocks until he reviewed a monthly report.
Legal ethics expert Bill Hodes commented that if the trades were accidental, quickly rectified, and not repeated, they might be considered a technical violation. Meanwhile, Gabe Roth from the group Fix The Court expressed that Robart’s actions reflect the diligence expected of judges.
“I think he probably should’ve mentioned this to the parties,” he added.