Boeing pays $200 million in fines

Bone of contention: Boeing 737 Max parked at an airfield in Seattle in June 2020
Image: Reuters

The US Securities and Exchange Commission accuses the group and its boss Muilenburg of having left investors in the dark about security deficiencies on the 737 Max. Boeing and Muilenberg will not admit to wrongdoing, but they will still pay.

Dhe aviation group Boeing will pay a high sum in the millions in the dispute with the US Securities and Exchange Commission after the two crashes of the 737 Max jet. The SEC had accused the company and then Boeing boss Dennis Muilenburg of misleading investors about the safety of its 737 Max. The Securities and Exchange Commission announced on Thursday (local time) that Boeing had to pay a fine of 200 million US dollars (around 203 million euros) and Muilenburg a fine of one million US dollars. Neither Boeing nor Muilenburg have admitted wrongdoing, but both agreed to the payment.

"In times of crisis and tragedy, it is especially important that public companies and executives provide markets with full, fair and truthful information," said SEC Chairman Gary Gensler. Boeing and Muilenburg misled investors by assuring the safety of the 737 Max despite knowing of serious safety concerns.

Boeing said in a statement that the settlement concluded the SEC's investigation and the company "will neither admit nor deny" the allegations.

The Airbus rival had agreed to pay more than $2.5 billion in fines with the Justice Department in early 2021 over fraud and conspiracy allegations related to the scandal. After two crashes with a total of 346 deaths, Boeing was heavily criticized - the company slipped into a crisis. The problem pilot 737 Max was banned from take-off for a long time after two crashes.

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