Daily Management Review

Boeing to pay $200M over public statements about safety of 737 MAX airliners


U.S. aviation company Boeing and the SEC reached an agreement to resolve the SEC's complaints over the firm's and its previous CEO's public statements regarding safety of the Boeing 737 MAX.

Clemens Vasters
Clemens Vasters
U.S. aircraft manufacturer Boeing will pay $200 million, and Dennis Muilenburg, its former CEO, will pay $1 million. The Securities and Exchange Commission (SEC) announced that the fines will be issued as part of a settlement of claims of misleading investors in relation to two crashes involving Boeing 737 MAX aircraft.

In October 2017, the newest batch of Boeing 737 MAX aircraft started flying. A year later, in October 2018, an aircraft operated by an Indonesian airline Lion Air crashed into the water shortly after takeoff, killing 189 people. A second 737 MAX crashed in Ethiopia five months later, in March 2019, killing 157 people. Since then, Boeing 737 MAX flights have been canceled.

SEC Chairman Gary Gensler stated that "there are no words to adequately express the awful loss of life brought on by these two catastrophes". "After the Boeings crashes in 2018 and 2019, the corporation and Muilenburg were mislading investors through their public remarks. The 737 MAX was described as safe and as having no issues with the flight control system in those statements."

source: sec.gov