Boeing will pay $200 million to settle charges they misled the public about the safety of the 737 Max following two fatal crashes in 2018 and 2019.
The SEC alleges that, following an October 2018 crash of a Lion Air 737 Max jet that killed 189 people, Boeing and Muilenburg knew that part of the plane's flight control system posed an ongoing safety concern yet told the public that the 737 Max was safe to fly. After a March 10, 2019 fatal 737 Max crash, the SEC alleges that Boeing and Muilenburg knowingly misled the public about "slips" and "gaps" in the certification process of that flight control system.
In a statement, Boeing said that the settlement "fully resolves the SEC's previously disclosed inquiry into matters relating to the 737 MAX accidents." The company and Muilenburg agreed to settle charges of violating the antifraud provisions of US securities laws, but they did not admit or deny the SEC's allegations. Boeing agreed to pay a $200 million settlement, and Muilenburg agreed to pay $1 million.
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Boeing pays $200 million to settle SEC charges over 737 MaxBoeing Co. will pay $200 million to settle charges that the company and its former CEO misled investors about the safety of its 737 Max after two of the airliners crashed, killing 346 people. The Securities and Exchange Commission said Thursday that it charged the aircraft maker and former CEO Dennis Muilenburg with making significant misleading public statements about the plane and an automated flight-control system that was implicated in the crashes in Indonesia and Ethiopia.
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