Arrow-right Camera
The Spokesman-Review Newspaper

The Spokesman-Review Newspaper The Spokesman-Review

Spokane, Washington  Est. May 19, 1883
Clear Night 66° Clear
News >  Business

Boeing to pay $200 million to settle SEC’s probe over 737 Max

Sept. 22, 2022 Updated Thu., Sept. 22, 2022 at 5:34 p.m.

 (Dreamstime)
(Dreamstime)
By Julie Johnsson and Tom Schoenberg Bloomberg News

Boeing Co. agreed to pay $200 million to settle US Securities and Exchange Commission allegations that the company and its former Chief Executive Officer Dennis Muilenburg failed to properly disclose safety issues with its 737 Max jetliner.

The settlement, which was announced by the SEC on Thursday, follows a probe by the regulator’s enforcement division. Investigators examined whether Boeing was adequately forthcoming to shareholders about material problems with its jetliner that crashed in 2018 and 2019.

Without admitting or denying the SEC’s findings, Boeing and Muilenburg consented to cease-and-desist orders that include penalties of $200 million and $1 million, respectively.

The twin tragedies killed 346 people and prompted one of the longest groundings in aviation history. The SEC enforcement action is one of the last remaining government investigations. Boeing had cautioned in its most recently quarterly filing that the “outcome of which may be material.”

Boeing paid a $243.3 million fine as part of a $2.5 billion settlement with the US Justice Department to end a criminal investigation in January 2021.

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Active Person

Subscribe now to get breaking news alerts in your email inbox

Get breaking news delivered to your inbox as it happens.