The SEC has accused Boeing of deliberately misleading the public about the safety of the aircraft.
Following the infamous 737 Max crash in 2018 that resulted in the deaths of 189 people, aircraft manufacturer Boeing has been under heavy scrutiny. Investigators have sought to determine the precise extent of the aircraft’s vulnerabilities, and more pressingly, how many of them Boeing was actually aware of.
Boeing has been in an ongoing discussion with the Securities and Exchange Commission over the precise extent of their knowledge. The SEC has alleged that Boeing was fully aware of the vulnerabilities of the 737 Max’s systems following the 2018 crash, and yet continued to circulate the aircraft up to another major crash in 2019. On the backs of these complaints, the SEC has ordered both Boeing and its former CEO Dennis Muilenburg to pay fines totaling in approximately $200 million to settle the matter.
“In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair, and truthful disclosures to the markets,” said SEC Chair Gary Gensler in a statement. “The Boeing Company and its former CEO, Dennis Muilenburg, failed in this most basic obligation. They misled investors by providing assurances about the safety of the 737 MAX, despite knowing about serious safety concerns.”
Boeing has agreed to pay the settlement terms, stating that it “fully resolves the SEC’s previously disclosed inquiry into matters relating to the 737 MAX accidents.”
— The Associated Press (@AP) September 23, 2022
“Today’s settlement is part of the company’s broader effort to responsibly resolve outstanding legal matters related to the 737 MAX accidents in a manner that serves the best interests of our shareholders, employees, and other stakeholders,” Boeing said.
Despite agreeing to pay the settlement fines, Boeing has neither confirmed nor denied its knowledge of the vulnerabilities of the 737 Max.