Boeing settles with stock watchdog in aftermath of 737 MAX crashes

Boeing settles with stock watchdog in aftermath of 737 MAX crashes
Boeing settles with stock watchdog in aftermath of 737 MAX crashes

NOS Newstoday, 01:38

Boeing has reached a $200 million settlement with the SEC. This buys the company off further prosecution. It had been accused of misleading investors about shortcomings in the 737 MAX aircraft.

In 2018 and 2019, two Boeing 737 MAXs crashed within a few months, killing a total of 346. It turned out that something was wrong with the sensors of the MCAS safety system, causing the nose of the aircraft to be pushed down.

Several investigations have been opened into the role of Boeing. At the beginning of last year, the company already paid 2.5 billion dollars in a settlement with the American judiciary. That case was about deception of the aviation authority FAA about the faults of the aircraft.

Price sensitive information

The SEC, in turn, investigated whether Boeing had misled investors and concluded that this was indeed the case. Listed companies are obliged to disclose price-sensitive information correctly and in a timely manner.

“After the first crash, Boeing and [topman] Muilenburg that MCAS posed a safety concern, yet they continued to assure the public that the 737 MAX was as safe as any other aircraft,” the SEC wrote in a press release. “And after the second accident, they stated that there were no derailments or deficiencies. been in the MCAS certification process, although they were aware of information to the contrary.”

The SEC has now agreed that the case will be settled with a fine of 200 million dollars for Boeing and 1 million for then-CEO Muilenburg. The settlement does not mean that the American aircraft manufacturer admits guilt. The money will go to a new fund to compensate disadvantaged investors.

The article is in Dutch

Tags: Boeing settles stock watchdog aftermath MAX crashes

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