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Boeing agrees to pay $301 million for misleading the public about the 737 Max.

Boeing and its former CEO Dennis Muilenberg have agreed to pay a hefty fine to settle charges from the Securities and Exchange Commission that they misled the public about the safety of their aircraft. 737 maximum After two fatalities in 2018 and 2019.

The SEC said after the Lion Air 737 Max jet crash in October 2018 that killed 189 people, Boeing and Muhlenberg said part of the plane’s flight control system had raised ongoing safety concerns. The 737 Max claimed to have told the public that it was safe, even though he knew it was safe. jump.

After the fatal 737 Max crash on March 10, 2019, the SEC said Boeing and Muilenberg deliberately misled the public about “slips” and “gaps” in the certification process for their flight control systems. I claim.

A Boeing 737 MAX 10 airliner taxiing at Boeing Field after its maiden flight on June 18, 2021 in Seattle, Washington. (Getty)

SEC Chairman Gary Gensler said in a statement: “In times of crisis and tragedy, it is especially important that public companies and management provide full, fair and truthful disclosures to the market.

“Boeing and its former CEO, Dennis Muilenberg, failed in this most basic duty. misled investors by assuring about

Boeing said in a statement that the settlement “completely resolves an investigation previously disclosed by the SEC into matters related to the 737 MAX accident.”

“Today’s settlement responsibly resolves the outstanding legal issues related to the 737 MAX accident in a manner that serves the best interests of our shareholders, employees and other stakeholders,” Boeing said in a statement. It’s part of our broader commitment to the cause,” Boeing said.

After the fatal 737 Max crash on March 10, 2019, the SEC said Boeing and Muilenberg deliberately misled the public about “slips” and “gaps” in the certification process for their flight control systems. I claim. (EPA)

The company and Muilenberg agreed to settle charges for violating anti-fraud provisions of US securities laws, but neither admitted nor denied the SEC’s allegations. Boeing said he agreed to pay a $301 million settlement, and Mullenberg agreed to pay her $1.5 million.

“Boeing and Muhlenberg put profits first by misleading investors about the safety of the 737 Max, resulting in the loss of 346 lives and untold grief to so many families. We are trying to restore Boeing’s image following two tragic accidents,” said Gurbir Grewal. , director of the SEC’s Enforcement Division in a statement.

While the fines are substantial, they pale in comparison to the economic damage Boeing has suffered over the years due to the 737 Max.

Boeing’s published losses amounted to tens of billions of dollars, which does not include the company’s ongoing legal liability.

Boeing’s stock fell more than 3% on Thursday, but rose slightly in after-hours trading following the SEC’s announcement.

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Boeing agrees to pay $301 million for misleading the public about the 737 Max.

Source link Boeing agrees to pay $301 million for misleading the public about the 737 Max.

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