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Boeing to pay $200M for deceptive buyers over 737 Max

Boeing pays $200 million to settle an investigation into its deceptive claims following two lethal crashes of its 737 Max plane.

Federal regulators stated Thursday that Boeing executives deceived shareholders after the crashes in 2018 and 2019 killed 346 individuals.

“Boeing and [then-CEO Dennis] Muilenburg put earnings over individuals by deceptive buyers concerning the security of the 737 Max, all in an effort to rehabilitate Boeing’s picture,” stated Gurbir S. Grewal of the Securities and Alternate Fee.

Muilenburg agreed to pay $1 million out of his personal pocket, based on an SEC press release. He was canned in December 2019 amid the 737 Max scandal.

Neither Muilenburg nor Boeing admitted or denied any findings from the SEC investigation, the fee famous. The plane maker didn’t instantly touch upon the settlement.

After the primary 737 Max crash — Lion AIr Flight 610, which killed 189 people after taking off from Jakarta, Indonesia — Boeing issued a press launch claiming the 737 Max was “as protected as any airplane that has ever flown the skies.”

Simply months later, one other 737 Max flight on Ethiopian Airways crashed shortly after takeoff from Addis Ababa, killing 157 people.

In response, the jet mannequin was shortly grounded worldwide. The SEC stated its investigation revealed Boeing executives knew concerning the issues with the 737 Max, specifically its flight-control system, however stored them hidden.

“In instances of disaster and tragedy, it’s particularly necessary that public corporations and executives present full, honest, and truthful disclosures to the markets,” SEC chair Gary Gensler stated. “The Boeing Firm and its former CEO, Dennis Muilenburg, failed on this most simple obligation.”

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