- Advertisement -spot_img
Thursday, September 29, 2022

Boeing misled investors over 737 MAX to pay $200 million to settle US charges

The report said Boeing will pay $200 million to settle allegations made by the United States Securities and Exchange Commission (SEC) that it misled investors about the 737 MAX aircraft, which was destroyed after two fatal crashes. was halted for 20 months, in which 346 people died. ,

The SEC also said that former Boeing CEO Dennis Muilenberg agreed to pay $1 million.

“In times of crisis and tragedy, it is particularly important that publicly traded companies and officials provide markets with complete, fair and truthful information,” SEC Chairman Gary Gensler said in a statement.

The head of the regulator said that Boeing and Muilenburg “did not respond to this basic obligation.”

The SEC said Boeing and Muilenburg neither accepted nor denied the SEC’s findings. The regulatory agency said a fund would be set up for the benefit of the injured investors.

The SEC accused both Boeing and Muilenburg of “making materially misleading public statements following the Boeing plane crashes in 2018 and 2019.”

Boeing confirmed the agreement and said it does not admit or deny wrongdoing.

The company said it has made “fundamental changes that have strengthened our safety procedures” and said “the settlement is part of a larger initiative to responsibly address outstanding legal issues related to 737 MAX accidents.”

The accidents were linked to a flight control system called the Maneuver Characteristic Enhancement System (MCAS). The SEC stated that “after the first crash, Boeing and Muilenburg were aware that MCAS faced an ongoing aircraft safety problem, but still assured the public that the 737 MAX is ‘as safe as any aircraft that can fly’.” Sometimes flies in the sky.”

After the second crash, the SEC said, “Boeing and Muilenburg assured the public that there were no flaws or flaws in the certification process with respect to the MCAS, notwithstanding learning to the contrary.”

In January 2021, Boeing agreed to pay $2.5 billion in fines and damages to settle the US Justice Department’s criminal investigation into the 737 MAX crashes.

The Justice Department settlement, which allowed Boeing to avoid prosecution, included a $243.6 million fine, $1.77 billion in compensation to the airlines, and a $500 million accident victims fund for conspiracy to commit fraud related to the aircraft’s faulty design.

Join Voice of America! subscribe our channel youtube Turn on more notifications, or follow us on social media: Facebook, Twitter I instagram,

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
Latest news
Related news
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here