The aircraft maker and its former CEO allegedly misled the public and investors by claiming the plane was safe despite knowing that a flight-control system posed a safety risk, the Securities and Exchange Commission said on Thursday.
in a press release that"the 737 Max is as safe as any airplane that has ever flown the skies." By then, the company and its CEO already knew that the MCAS system posed a problem and had started to redesign it, facts which it left out of the announcement that Muilenburg himself edited, according to the SEC. crashed shortly after takeoffThe SEC alleged that Boeing also falsely claimed that there had been no gaps in the process of certifying the plane in the first place.
"We will never forget those lost on Lion Air Flight 610 and Ethiopian Airlines Flight 302, and we have made broad and deep changes across our company in response to those accidents — fundamental changes that have strengthened our safety processes and oversight of safety issues, and have enhanced our culture of safety, quality, and transparency," a company spokesperson said in a statement.
He added that the settlement"serves the best interests of our shareholders, employees and other stakeholders."criminal charges filed by the Justice Department that it defrauded safety regulators in connection with the development of the 737 Max. Most of that money went to airlines whose 737 Max jets were grounded for nearly two years following the Lion Air and Ethiopian Airlines crashes.
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