Boeing to pay $200 million to settle US accusation it misled investors over 737 MAX

Boeing will pay $200 million to settle charges by the United States Securities and Exchange Commission (SEC) that it misled investors about the 737 MAX plane, which was grounded for 20 months after two fatal crashes left 346 dead, the report said. Thursday the agency.

The SEC also said former Boeing CEO Dennis Muilenburg agreed to pay $1 million.

“In times of crisis and tragedy, it is especially important that publicly traded companies and executives provide full, fair and truthful information to the markets,” SEC Chairman Gary Gensler said in a statement.

The head of the regulator added that Boeing and Muilenburg “did not respond to this basic obligation.”

The SEC said that Boeing and Muilenburg neither admitted nor denied the SEC’s conclusions. The regulatory agency said a fund will be established for the benefit of injured investors.

The SEC charged both Boeing and Muilenburg “with making materially misleading public statements following the Boeing aircraft accidents in 2018 and 2019.”

Boeing confirmed the agreement and said it did not admit or deny wrongdoing.

The company said it had made “fundamental changes that have strengthened our safety processes” and said “the settlement is part of a larger initiative to responsibly resolve outstanding legal issues related to the 737 MAX accidents.”

The accidents were linked to a flight control system called the Maneuvering Characteristics Augmentation System (MCAS). The SEC said that “after the first accident, Boeing and Muilenburg knew that MCAS posed an ongoing aircraft safety issue, but nevertheless assured the public that the 737 MAX was ‘as safe as any aircraft that has ever flown in the skies.'” .

After the second accident, the SEC said, “Boeing and Muilenburg assured the public that there were no flaws or loopholes in the certification process with respect to MCAS, despite learning to the contrary.”

In January 2021, Boeing agreed to pay $2.5 billion in fines and damages to resolve a US Department of Justice criminal investigation into the 737 MAX crashes.

The Justice Department settlement, which allowed Boeing to avoid prosecution, included a $243.6 million fine, $1.77 billion in compensation to airlines and a $500 million accident victims’ fund. of fraud conspiracy related to the faulty design of the aircraft.

Connect with the Voice of America! Subscribe to our channel Youtube and turn on notifications, or follow us on social media: Facebook, Twitter and Instagram.