The Boeing Company has agreed to pay a $200 million fine to settle Securities and Exchange Commission (SEC) allegations that the company failed to disclose to investors safety issues with its 737 Max aircraft after two of the airplanes crashed in 2018 and 2019, killing 346 people .
The SEC said on Thursday it had charged Boeing and its former CEO Dennis Muilenburg with making misleading public statements about the safety of the aircraft despite knowing after the first crash that the flight control system, the Maneuvering Characteristics Augmentation System (MCAS), posed an ongoing safety issue that required remediation.
Per the SEC, this included Boeing provided an assurance after the first crash in November 2018 that the 737 Max “is as safe as any airplane that has ever flown the skies” when the company had already begun work on a redesign of the MCAS software to address the safety issue.
READ: Boeing falls short on earnings and revenue, reiterates expectation to be cash flow positive for 2022
Neither Boeing nor Muilenburg admitted wrongdoing or denied the SEC’s findings, agreeing to pay $200 million and $1 million respectively to settle the allegations.
Shares of the aerospace company were down more than 4% following the news, trading at about US$133 per share.
Contact the author at [email protected]
Follow her on Twitter @emilyjjarvie