Boeing To Pay $200 Million To Settle SEC Charges It Misled Investors about 737 Max

Ex-CEO Dennis Muilenburg agrees to pay a penalty of $1 million.

Thom Patterson

Friday, September 23, 2022 at 05:23 PM ET

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Boeing and ex-CEO Dennis Muilenburg “put profits over people by misleading investors,” the SEC said. [Courtesy: Boeing]

Key Takeaways:

Boeing agreed to pay $200 million to settle SEC charges for misleading investors about the 737 Max's safety and its MCAS system, which was implicated in two fatal crashes.
Former CEO Dennis Muilenburg also settled, paying $1 million for approving a press release that selectively highlighted facts and failed to disclose serious safety concerns.
Both Boeing and Muilenburg were charged with negligently violating antifraud provisions by putting "profits over people," without admitting or denying the SEC's findings.
This settlement follows a previous $2.5 billion agreement with the Justice Department in 2021 regarding misleading the FAA about the 737 Max.

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Boeing (NYSE: BA) has agreed to pay penalties of $200 million as part of a settlement to resolve charges by the Securities and Exchange Commission that Boeing “put profits over people” by misleading investors about the 737 Max and its maneuvering characteristics augmentation system (MCAS).

It was Boeing’s MCAS that was blamed for the crashes of two 737 Max flights in Indonesia and Ethiopia that left 346 people dead in 2018 and 2019.