Boeing to pay $200 million to settle charges over misleading investors after 737 Max crashes

Boeing volition wage $200 cardinal and then-CEO Dennis Muilenburg volition wage $1 cardinal to settee charges implicit misleading investors successful the aftermath of 2 deadly crashes of 737 Max jetliners, the Securities and Exchange Commission said Thursday.

"In times of situation and tragedy, it is particularly important that nationalist companies and executives supply full, fair, and truthful disclosures to the markets. The Boeing Company and its erstwhile CEO, Dennis Muilenburg, failed successful this astir basal obligation," SEC Chair Gary Gensler successful a statement.

The 2 crashes — 1 successful October 2018 and different successful March 2019 — killed each 346 radical aboard the 2 flights and led to a worldwide grounding of the jetliners. The grounding was archetypal lifted successful precocious 2020.

Boeing fired Muilenberg successful December 2019 successful the midst of the planes' extended grounding and comments astir erstwhile helium expected regulators to wide the planes to alert again. The comments besides strained the manufacturer's narration with the Federal Aviation Administration, prompting nationalist admonishment by the regulator.

"Today's colony is portion of the company's broader effort to responsibly resoluteness outstanding ineligible matters related to the 737 MAX accidents successful a mode that serves the champion interests of our shareholders, employees, and different stakeholders," Boeing said successful a statement.

Neither Boeing nor Muilenburg admitted nor denied the SEC's findings, the bureau said.

In January 2021, Boeing agreed to wage $2.5 cardinal to settee a transgression probe with the Justice Department implicit the planes.

Two damning congressional investigations after the crashes recovered management, plan and regulatory lapses successful the 737 Max's improvement and certification. That led to caller authorities to reform craft certification, giving much power implicit the process to the FAA.