Boeing pays US$200 million to settle 737 MAX civil suit; former CEO fined US$1 million

September 26th 2022

Print Friendly

The U.S. Securities and Exchange Commission (SEC) said Boeing had agreed to pay a US$200 million penalty to settle civil charges that the company made materially misleading public statements following two fatal 737 MAX crashes operated by Indonesia's Lion Air and Ethiopian Airlines, respectively. Read More » Also, former Boeing CEO, Dennis Muilenburg, had agreed to pay a US$1 million fine to settle the same charges, the SEC said. “In times of crisis and tragedy, it is especially important public companies and executives provide full, fair and truthful disclosures to the markets,” SEC chair, Gary Gensler, said. “The Boeing Company and its former CEO, Dennis Muilenburg, failed in this most basic obligation. They misled investors by providing assurances about the safety of the 737 MAX, despite knowing of serious safety concerns.” Boeing settled the matter “without admitting or denying the SEC’s findings”, the regulator said. The penalty payments will establish a fund for harmed investors. Boeing already agreed, in January 2021, to pay US$2.5 billion to settle a criminal investigation conducted by the U.S. Justice Department into the 737 MAX fatal crashes. Muilenburg was terminated as CEO in December 2019.