Boeing Agrees to Pay $200M in SEC's 737 Investigation

Allegations involve misleading statements to company's investors
By Bob Cronin,  Newser Staff
Posted Sep 22, 2022 6:35 PM CDT
Boeing Agrees to Pay $200M in SEC's 737 Investigation
Crews work on a 737 MAX on the final assembly line in June at Boeing's plant in Renton, Wash.   (Ellen M. Banner/The Seattle Times via AP, Pool, File)

(Newser) – Boeing will pay the federal government $200 million to settle an investigation into statements the company and its chief executive made to investors after two fatal crashes of its 737 Max jetliners. The Securities and Exchange Commission also announced Thursday that Dennis Muilenburg, the former CEO, agreed to pay another $1 million, the Wall Street Journal reports. "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 in a statement. "The Boeing Company and its former CEO, Dennis Muilenburg, failed in this most basic obligation." Neither Boeing nor Muilenburg commented Thursday.

All 346 people aboard the two planes were killed in the crashes, which took place in October 2018 and March 2019. The 737 Max then was grounded worldwide. Muilenburg's predictions about when regulators would clear the plane to return to service frustrated Boeing's airline customers, as well as Federal Aviation Administration officials, per CNBC. "Boeing and Muilenburg put profits over people by misleading investors about the safety of the 737 Max all in an effort to rehabilitate Boeing's image," said Gurbir Grewal, director of the SEC's enforcement division, per the AP. In January 2021, Boeing agreed to pay $2.5 billion to settle a Justice Department investigation. (Read more Boeing stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
X
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.

X