Boeing’s 737 MAX jets were grounded for nearly two years after two deadly crashes in 2018 and 2019—and on Thursday, the company resolved claims that it misled investors in the early months of that crisis.
Boeing agreed Thursday to pay $200 million to settle Securities and Exchange Commission charges that it misled investors after two deadly 737 MAX crashes killed 346 people and brought its fleet to a 20-month standstill—the latest settlement struck by Boeing after the 737 disaster.AFP via Getty ImagesThe SEC charged Boeing and its former CEO Dennis Muilenburg with making “materially misleading public statements” in the wake of two crashes of its 737 MAX in 2018 and 2019.
The SEC alleges that Boeing and Muilenburg knew the first crash was caused partly by a malfunctioning flight control feature that posed an “ongoing airplane safety issue,” but still told the public the plane was “as safe as any airplane that has ever flown the skies,” blaming the crash instead on pilot error and poor aircraft maintenance.
After the 2019 crash, the SEC says Boeing defended the processes to certify the 737 MAX even though Muilenburg was “aware of information calling into question certain aspects of the certification process.” In addition to the $200 million the company must pay, Muilenburg, who was CEO at the time of the crashes before he wasBoeing did not admit or deny any of the SEC’s allegations, the regulator said.
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