Aircraft manufacturer Boeing has reached a settlement of 200 million dollars (205 million euros) with the American stock exchange regulator. Former CEO Dennis Muilenberg agrees to a $1 million fine. The Securities and Exchange Commission (SEC) reported this on Thursday in a press release. Boeing is accused of misinforming investors about the safety of its 737 MAX aircraft. With the settlement, Boeing buys out further prosecution.
The regulator opened an investigation into the concern in the wake of two 737 MAX plane crashes in 2018 and 2019, which killed 346 people. The SEC writes that the publicly traded company has failed to provide honest and truthful information. According to the watchdog, Boeing and Muilenburg knew there were safety issues after the first crash in 2018. Still, they assured the public that the aircraft was “as safe as any other aircraft”.
After the second crash in 2019, the group maintained this attitude, the regulator says. By misleading the public and investors, Boeing and Muilenberg attempted to restore the manufacturer’s image “despite being aware of conflicting information.” Although Boeing and Muilenberg neither deny nor admit the allegations, they agreed to the fines.
The 737 MAX became world news after two planes crashed in October 2018 and March 2019. The US House of Representatives investigative report revealed a dysfunctional computer system was the cause of the drama: the nose of the plane was pushed down at the wrong time. Boeing previously reached a $2.5 billion settlement with the United States Department of Justice and the Federal Aviation Administration (FAA).
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