Boeing to pay $200m settlement for misleading investors over deadly 737 Max crashes

Boeing will pay $200 million to settle an investigation into its misleading claims after two fatal crashes of its 737 Max jet.

Federal regulators said Thursday that Boeing executives misled shareholders after crashes in 2018 and 2019 killed 346 people.

“Boeing i [then-CEO Dennis] Muilenburg puts profits over people by misleading investors about the safety of the 737 Max, all in an effort to rehabilitate Boeing’s image,” said Gurbir S. Grewal of the Securities and Exchange Commission.

Muilenburg agreed to pay $1 million out of pocket, according to one SEC press release. He was preserved in December 2019 in the middle of the scandal 737 Max.

Neither Muilenburg nor Boeing admitted or denied any findings of the SEC investigation, the commission noted. The plane maker did not immediately comment on the deal.

After the first 737 Max crash: Lion Air Flight 610, which killed 189 people after taking off from Jakarta, Indonesia, Boeing issued a press release claiming the 737 Max it was “as safe as any plane that has ever flown the skies.”

A few months later, another Ethiopian Airlines 737 Max crashed shortly after takeoff from Addis Ababa, killing 157 people.

In response, the jet model was quick around the world. The SEC said its investigation revealed Boeing executives knew about problems with the 737 Max. specifically its flight control systembut kept them hidden.

“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 Chairman Gary Gensler. “The Boeing Company and its former CEO, Dennis Muilenburg, breached this most basic obligation.”

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