Boeing pays $200 million to settle SEC charges over 737 Max safety claims

boeing pays $200 million to settle sec charges over 737 max safety claims

Boeing Co. will pay $200 million to settle charges that the company and its former CEO misled investors about the safety of its 737 Max after two of the airliners crashed, killing 346 people.

The Securities and Exchange Commission said Thursday that it charged the aircraft maker and former CEO Dennis Muilenburg with making significant misleading public statements about the plane and an automated flight-control system that was implicated in the crashes in Indonesia and Ethiopia.

Neither Boeing nor Muilenburg admitted wrongdoing, but they offered to settle and pay penalties, including $1 million to be paid by Muilenburg, who was ousted in December 2019, nine months after the second crash.

The SEC said Boeing and Muilenburg knew that the flight system, known as MCAS, posed a safety issue but promised the public that the plane was safe. The SEC said they also falsely claimed that there had been no gaps in the process of certifying the plane in the first place.

“Boeing and Muilenburg put profits over people by misleading investors about the safety of the 737 Max all in an effort to rehabilitate Boeing’s image” after the crashes, said Gurbir Grewal, director of the SEC’s enforcement division.

Boeing said it has made “broad and deep changes across our company in response to those accidents” to improve safety and quality.

“Today’s settlement is part of the company’s broader effort to responsibly resolve outstanding legal matters related to the 737 Max accidents in a manner that serves the best interests of our shareholders, employees and other stakeholders,” said the Arlington, Virginia-based company.

A new Max operated by Indonesia’s Lion Air crashed into the Java Sea in October 2018, and another Max flown by Ethiopian Airlines nosedived into the ground near Addis Ababa in March 2019. In each crash, MCAS pushed the nose down after getting faulty readings from a single sensor, and pilots were unable to regain control.

The crashes led regulators around the world to ground the plane for nearly two years until Boeing made fixes to the flight-control system, which was designed to help prevent aerodynamic stalls when the nose points up too sharply. Neither plane that crashed was in danger of stalling.

The SEC accused Boeing of misleading investors in a press release after the Indonesia crash which said the plane was “as safe as any airplane that has ever flown the skies.” Boeing knew when it made that claim that MCAS would need to be fixed and was already designing changes, the SEC said.

After the crash in Ethiopia, Muilenburg said on a call with investors and Wall Street analysts and during Boeing’s annual shareholder meeting that the company had followed the normal process for getting the plane certified by regulators. But by then Boeing — in response to a subpoena from federal prosecutors — had already found documents indicating that it didn’t disclose key facts about MCAS to the Federal Aviation Administration, the SEC charged.

Boeing reached a separate $2.5 billion settlement with the Justice Department last year. Most of that money went to airlines whose Max jets were grounded.

News Related

OTHER NEWS

1 teen dead, 2 hurt after stolen Maserati crashed in St. Petersburg

ST. PETERSBURG — They slipped out of their homes and into the Saturday night darkness without their parents knowing. Around 3:30 a.m. the next morning, the three teen boys came ... Read more »

Woman who recruited migrants, arranged DeSantis's flights to Martha's Vineyard revealed

Woman who recruited migrants, arranged DeSantis’s flights to Martha’s Vineyard revealed The woman who allegedly lured undocumented migrants onto flights from Texas to Martha’s Vineyard for a secretive public awareness ... Read more »

New World Development, Ping An Insurance to explore Hong Kong issue of yuan shares in support of new scheme

New World Development (NWD) and Ping An Insurance on Monday became the first Hong Kong-listed companies to declare they will explore issuing yuan-denominated shares in a show of support for ... Read more »

'Big Short' Investor Michael Burry On How Current Market Differs From Dot-Com Bubble Burst: 'Only Way Out Is By Trampling Each Other'

Legendary investor Michael Burry, who famously bet against the housing market in the run-up to the 2008 financial crisis, is known to be skeptical about passive investing. On Sunday, “The Big Short” ... Read more »

JD.com Tycoon Settles Rape Suit Hours Before US Trial Begins

(Bloomberg) — Billionaire JD.com founder Richard Liu has reached a settlement with Liu Jingyao, the Minnesota student who accused him of rape in 2018, bringing to a close a civil ... Read more »

Yolanda Hadid Jokes She's ‘Worst Mom Ever' in Almond-Eating TikTok Video

Yolanda Hadid's TikTok video has received mixed reactions, with some calling it "toxic" Read more »

Manchester City vs Manchester United player ratings out of 10

We’re entering new territory when it comes to grading anything that has to do with Manchester City, making Man City vs Manchester United player ratings a real hassle. As bad ... Read more »

Residents at Florida retirement community struggle with massive flooding

A Seminole County firefighter works to clear a drain at an intersection in Hacienda Village, a 55- plus manufactured homes community in Winter Springs, Florida, on Sunday, Oct. 2, 2022. ... Read more »

Patrick Mahomes breaks NFL QB record not even Tom Brady reached

10/2/22 Patrick Mahomes is without a question an elite quarterback, and he’s showing that anew this season, with one excellent performance after another. In Week 4’s assignment against the Tampa ... Read more »

Palestinians: Israel military kills 2 during West Bank raid

Palestinians: Israel military kills 2 during West Bank raid Palestinian officials say the Israeli military has killed two Palestinians in the occupied West Bank TEL AVIV, Israel — The Israeli ... Read more »

‘They never made it to the hospital’: Aunt of teen brothers slain in Oakland says masked shooter attacked birthday gathering

Brothers Angel Soleto and Jazy Soleto of Berkeley were killed after a masked shooter opened fire at a birthday gathering in Oakland, a relative said. The two Berkeley High School ... Read more »

Concealed carry insurance business booming as more Americans pack heat

Concealed carry policy sales have surged over the past few years Read more »

Stop saying ‘hello’ orders Indian state

image And other stories from the stranger side of life Civil servants have been told to stop saying “hello” in the Indian state of Maharashtra, reported The Times. The state ... Read more »

NSA Worker Tried To Sell US Secrets To Foreign Official Who Turned Out To Be An FBI Agent

NSA Worker Tried To Sell US Secrets To Foreign Official Who Turned Out To Be An FBI Agent A former National Security Agency (NSA) worker is accused of trying to ... Read more »

French airport group ADP confirms 2022, 2023 travel outlook for Paris

Paris Charles de Gaulle airport in Roissy-en-France near Paris PARIS (Reuters) – French airport group ADP confirmed its Paris air traffic outlook for 2022 and 2023, driven by a recovery ... Read more »

Central Florida struggles with Ian’s ongoing sewage crisis

Water gushed Sunday morning, Oct. 2, 2022, from a sewage manhole cover along Winter Park’s Lakemont Avenue just west of Winter Park High School, in Florida. The liquid had the ... Read more »

Conor Gallagher ‘desperate’ to play for and be successful at Chelsea

Conor Gallagher ‘desperate’ to play for and be successful at Chelsea A new head coach is often a chance for players to impress anew, to convince of their qualities, to ... Read more »

‘Always the worst thing’: Bailey Zappe gets brutally honest on Patriots’ OT loss to Packers in his first NFL game

10/2/22 Rookie quarterback Bailey Zappe was suited up for his first NFL game ever on Sunday. By the New England Patriots’ third offensive drive against the Green Bay Packers, he ... Read more »

More action at port possible, says striking union

The strike at Felixstowe will run until 5 October The union on strike at the UK’s busiest container port warned there could be further industrial action. Workers at the Port ... Read more »

First look: Detroit Lions at New England Patriots odds and lines

Detroit Lions quarterback Jared Goff (16) looks to pass against the Seattle Seahawks during the first half at Ford Field. The Detroit Lions (1-3) visit the New England Patriots (1-3) Sunday ... Read more »

Wisconsin Football: Coaching Candidates to Replace Paul Chryst

A complete breakdown of which coaches could be candidates to Paul Chryst at Wisconsin. Wisconsin fired coach Paul Chryst on Sunday. Defensive coordinator Jim Leonhard will work as the team’s ... Read more »

Video shows a rare brawl between a pod of orcas and 2 humpback whales in the Pacific Ocean

Bigg’s orcas clash with humpback whale “Reaper” Mollie Naccarato, Sooke Coastal Explorations, PWWA Whale watchers spotted an unusual encounter between transient orcas and humpback whales off the coast of Washington. ... Read more »

Magic Kingdom Dining: The Complete Guide

I’ll be honest – the Magic Kingdom dining situation isn’t my favorite. It’s not that the food isn’t good, it’s just that I love the dining at the other parks ... Read more »

The Three Poisons In Buddhism Explained

A row of Buddhist statues Most of us have heard of the infamous Seven Deadly Sins that, according to Catholicism, forge the pillars of all sinful behavior here on Earth ... Read more »

"I couldn’t do anything!" - Michael Jordan once named the only player he couldn't dominate

Michael Jordan loved the competition and he often dominated his rivals. But shockingly, he wasn’t able to do so against one player. Michael Jordan © RVR Photos-USA TODAY Sports View ... Read more »

Killings of 5 Men in California Are Related, Police Say

Detectives have located an unidentified "person of interest" in the killings Read more »

North Carolina man allegedly robs West Virginia Subway, assaults employees

North Carolina man allegedly robs West Virginia Subway, assaults employees SISSONVILLE, W.Va. (WOWK) — A North Carolina man was arrested on Saturday for allegedly robbing a Subway in Sissonville and ... Read more »

Instant Reaction: Rumors of Raiders Demise Greatly Exaggerated

The doom and gloom thrown out about the demise of the Las Vegas Raiders was proven greatly exaggerated today, after they beat the Denver Broncos. LAS VEGAS, Nev.–The rumors of ... Read more »

Politics of rebuilding intensify as Florida's devastation is laid bare

Political aftershocks of Hurricane Ian’s rampage through Florida are escalating over huge federal aid needed to restore devastated communities and the question of whether those most vulnerable to extreme weather ... Read more »

Cooper Rush does something no one has ever done

Cooper Rush does something no one has ever done Cowboys quarterback Cooper Rush may not create a controversy in Dallas, but he has made some history. According to he NFL, ... Read more »

Family chased by gun-wielding driver

Santa Clarita Valley Sheriff’s Station deputies detained a gun-wielding woman at approximately 11 a.m. at the Mobil gas station on the 27700 block of McBean Parkway on Sunday. The victims, ... Read more »

Tom Brady Had 6-Word Message For Patrick Mahomes After Game

Patrick Mahomes got the best of Tom Brady and the Tampa Bay Buccaneers on Sunday night. Kansas City topped Tampa Bay, 41-31, in a rematch of the 2020 season’s Super ... Read more »

On Coast Guard flight over battered SW Florida coast, massive damage is evident

A Coast Guard flight crew member looks out the window as she’s positioned to watch for any danger on a flight to Southwest Florida on Sunday, Oct. 2, 2022. From ... Read more »

Starlux Airlines To Double Capacity By Year End And Add Aircraft

Starlux Airlines To Double Capacity By Year End And Add Aircraft On Friday, shares in Taiwan’s newest international carrier, Starlux Airlines, started trading on the local stock exchange. Starlux Airlines ... Read more »

Brazil's Bolsonaro and the right outperform, defying polls

Brazil's Bolsonaro and the right outperform, defying polls Brazil’s election has provided the world yet another example of polls missing the mark, with incumbent Jair Bolsonaro considerably outperforming expectations to ... Read more »

LA Angels Beat Texas Rangers 8-3 for Seventh Straight Win

Ronald Martinez, Getty Images The Los Angeles Angels wrapped up the home portion of their seventh consecutive losing season by hitting superbly, pitching more than adequately and extending their longest ... Read more »

NBL's Adelaide 36ers Stun Suns 134-124 in Preseason Game

The 36ers shot 55.8% from 3-point range on 43 attempts Read more »

Wisconsin fires football coach Paul Chryst, names defensive coordinator Jim Leonhard interim coach

Wisconsin fires football coach Paul Chryst, names defensive coordinator Jim Leonhard interim coach Wisconsin fired football coach Paul Chryst on Sunday after the team's 2-3 start. Athletic director Chris McIntosh ... Read more »

The Best Food in Portugal To Try

Portugal, which has always seemed to be an underrated vacation spot for Americans, is certainly having a moment. With many more US citizens visiting this Mediterranean country, the food of ... Read more »

QB Aaron Rodgers after Green Bay Packers' OT escape vs. New England Patriots: 'This way of winning, I don't think, is sustainable'

QB Aaron Rodgers after Green Bay Packers' OT escape vs. New England Patriots: 'This way of winning, I don't think, is sustainable' GREEN BAY, Wis. — Aaron Rodgers didn't figure ... Read more »
Breaking thailand news, thai news, thailand news Verified News Story Network