October 5, 2022

Boeing agrees to pay $200 million for misleading the public about the 737 Max

2 min read

SEC Allegations that, after the October 2018 crash of the Line Air 737 MAX jet that killed 189 people, Boeing and Muilenburg knew that part of the plane’s flight control system was a continuing safety concern, yet told the public that the 737 Max was safe to fly. After the fatal 737 Max crash on March 10, 2019, the SEC alleged that Boeing and Mylinburg knowingly misled the public about “slips” and “gaps” in the flight control system’s certification process.

“In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair and truthful disclosures to the markets,” SEC Chair Gary Gensler said in a statement. “The Boeing Company and its former CEO, Dennis Muilenburg, failed in this fundamental responsibility. They misled investors by providing assurances about the safety of the 737 MAX despite knowing of serious safety concerns. “What?”

In a statement, Boeing said the settlement “fully resolves the SEC’s previously disclosed inquiry into the 737 MAX accidents.”

“Today’s settlement is part of the company’s broader effort to resolve outstanding legal matters related to the 737 MAX accidents in a responsible manner that serves the best interests of our shareholders, employees and other stakeholders,” Boeing said. “

The company and Muilenburg agreed to settle charges of violating anti-fraud provisions of US securities laws, but did not admit or deny the SEC’s allegations. Boeing agreed to pay a $200 million settlement, and Meulenberg agreed to pay $1 million.

Gurbir Grewal said, “Boeing and Myelenberg profited off the public by misleading investors about the safety of the 737 Max in order to restore Boeing’s image after two tragic accidents that resulted in the loss of 346 lives. And many families suffered incalculable grief.” , the director of the SEC’s enforcement division said in a statement.

The fines, though large, pale in comparison Mali Mara Boeing has taken over the years because of the 737 Max. Boeing’s stated losses run into the tens of billions of dollars, and that doesn’t count the company’s ongoing legal exposure.
Shares of Boeing (B.A) It fell more than 3% on Thursday but rose slightly in after-hours trading after the SEC announcement.

Source link

Leave a Reply

Your email address will not be published.