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 has agreed to pay $200 million in penalties to the SEC for misleading investors about the safety of the 737 Max and its MCAS system after two fatal crashes.
Former Boeing CEO Dennis Muilenburg will also pay a $1 million penalty for his role in approving misleading public statements about the aircraft.
Both Boeing and Muilenburg were charged with negligently violating federal securities antifraud provisions by prioritizing profits over truthful disclosures, without admitting or denying the findings.
This SEC settlement follows a previous $2.5 billion agreement in 2021 with the Justice Department over charges of misleading the FAA regarding 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.