Boeing fined $200M for material misstatements on fatal plane crashes

Boeing

Boeing agreed to pay $200 million to settle charges laid by the Securities and Exchange Commission (SEC) that it misled investors regarding what caused two crashes of 737 MAX airplanes in 2018 and 2019 that killed 346 people.

The SEC found Boeing and its former chief executive officer, Dennis Muilenburg, made materially misleading statements regarding the role a flight control system on the 737 MAX airplane—the Maneuvering Characteristics Augmentation System (MCAS)—had in causing one crash in Indonesia in 2018 and another in Ethiopia in 2019.

After the first crash, Boeing and Muilenburg “knew that MCAS posed an ongoing airplane safety issue, but nevertheless assured the public that the 737 MAX airplane was ‘as safe as any airplane that has ever flown the skies,’” the SEC said Thursday in a press release. “Later, following the second crash, Boeing and Muilenburg assured the public that there were no slips or gaps in the certification process with respect to MCAS, despite being aware of contrary information.”

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