Boeing to pay $200 million to settle charges in 737 Max probe

A Boeing 737 MAX 7 lands during an evaluation flight at Boeing Field in Seattle, Washington on September 30, 2020.

Lindsey Wasson | Reuters

Boeing will pay $200 million and then-CEO Dennis Muilenburg will pay $1 million to settle charges of deceptive investors following two fatal 737 Max jetliner crashes, the Securities and Exchange Commission announced Thursday. Exchange Commission.

“In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair and truthful information to the markets. The Boeing Company and its former CEO, Dennis Muilenburg, failed in this most fundamental obligation. “said the chairman of the SEC. Gary Gensler in a statement.

The two crashes – one in October 2018 and the other in March 2019 – killed all 346 people aboard the two flights and caused the jetliners to be grounded worldwide. The grounding was first lifted in late 2020.

Boeing fired Muilenberg in December 2019 amid prolonged grounding of planes and comments about when he expected regulators to allow planes to fly again. The comments also strained the manufacturer’s relationship with the Federal Aviation Administration, prompting a public rebuke from the regulator.

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

Neither Boeing nor Muilenburg admitted or denied the SEC’s findings, the agency said.

In January 2021, Boeing agreed to pay $2.5 billion to settle a criminal investigation with the Ministry of Justice above the planes.

Two overwhelming congressional inquiries after the accidents, management, design and regulatory shortcomings were found in the development and certification of the 737 Max. This led to new legislation to reform aircraft certificationgiving more control over the process to the FAA.

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