Boeing reaches $200m settlement with regulators over its 737 Max
Boeing reached a $200m settlement with US securities regulators on Thursday to resolve an investigation into claims that the aircraft manufacturer and a former CE had deceived investors about problems with its 737 Max plane that led to two deadly crashes in 2018 and 2019. The company’s CE at the time, Dennis A. Muilenburg, agreed to pay a $1m fine as part of a separate settlement with the Securities and Exchange Commission, although the facts of the case were largely the same. In the settlement agreement, the S.E.C. said Boeing and Muilenburg had misled investors after the first jet crashed in Indonesia in 2018 by suggesting that human error was to blame, and omitting the company’s own concerns with the plane’s flight control system. Boeing made further misleading statements about the safety of the planes after a second plane crashed in Ethiopia a few months later, the S.E.C. said. “In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair and truthful disclosures to the markets,” Gary Gensler, the S.E.C. chair, said in a statement. “The Boeing Company and its former C.E.O., Dennis Muilenburg, failed in this most basic obligation.” The company settled without admitting or denying the facts of the case. Boeing said that it had improved “safety processes and oversight of safety issues” since the crashes and that the settlement was part of a “broader effort to responsibly resolve outstanding legal matters” related to the Max. “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,” Boeing said.<br/>
https://portal.staralliance.com/cms/news/hot-topics/2022-09-23/general/boeing-reaches-200m-settlement-with-regulators-over-its-737-max
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Boeing reaches $200m settlement with regulators over its 737 Max
Boeing reached a $200m settlement with US securities regulators on Thursday to resolve an investigation into claims that the aircraft manufacturer and a former CE had deceived investors about problems with its 737 Max plane that led to two deadly crashes in 2018 and 2019. The company’s CE at the time, Dennis A. Muilenburg, agreed to pay a $1m fine as part of a separate settlement with the Securities and Exchange Commission, although the facts of the case were largely the same. In the settlement agreement, the S.E.C. said Boeing and Muilenburg had misled investors after the first jet crashed in Indonesia in 2018 by suggesting that human error was to blame, and omitting the company’s own concerns with the plane’s flight control system. Boeing made further misleading statements about the safety of the planes after a second plane crashed in Ethiopia a few months later, the S.E.C. said. “In times of crisis and tragedy, it is especially important that public companies and executives provide full, fair and truthful disclosures to the markets,” Gary Gensler, the S.E.C. chair, said in a statement. “The Boeing Company and its former C.E.O., Dennis Muilenburg, failed in this most basic obligation.” The company settled without admitting or denying the facts of the case. Boeing said that it had improved “safety processes and oversight of safety issues” since the crashes and that the settlement was part of a “broader effort to responsibly resolve outstanding legal matters” related to the Max. “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,” Boeing said.<br/>