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 the SEC for misleading investors about the 737 Max and its MCAS system, which was blamed for two fatal crashes.
Former Boeing CEO Dennis Muilenburg will pay a $1 million penalty for his role in approving a misleading press release that failed to disclose known safety concerns.
The SEC charged both Boeing and Muilenburg with negligently violating antifraud provisions by "putting profits over people" and failing to provide full, fair, and truthful disclosures.
This settlement follows a $2.5 billion agreement with the Justice Department in 2021 and is part of Boeing's ongoing efforts to resolve legal matters related to the 737 Max accidents.

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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.