Boeing will pay $200 million and former CEO Dennis Muilenburg will pay $1 million to settle charges over misleading investors in the wake of two deadly crashes of 737 Max jetliners. The company and Muilenburg agreed to settle charges of violating the antifraud provisions of US securities laws, but they did not admit or deny the SEC’s allegations. “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 following two tragic accidents that resulted in the loss of 346 lives and incalculable grief to so many families,” said Gurbir Grewal, director of the SEC’s Enforcement Division in a statement.
Two crashes , one in October 2018 and another in March 2019, killed all 346 people aboard the two flights and led to a worldwide grounding of the jetliners until late 2020. “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,” Boeing said in a Thursday statement. Previously, in January 2021, Boeing agreed to pay $2.5 billion to settle a criminal probe with the Justice Department over the planes. Congressional investigations after the crashes found management, design and regulatory lapses in the 737 Max’s development and certification.