Boeing fined $6.4 billion for misleading assurances about 737 MAX safety

US regulators announced on the 22nd that the Securities and Exchange Commission (SEC) fined aviation giant Boeing 200 million US dollars (about 6.4 billion Taiwan dollars) for the safety of the 737 MAX passenger plane after two fatal accident and making misleading guarantees.

A Boeing 737 Max aircraft during an exhibition at the Farnborough International Air Show, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra

Boeing fined 6.4 billion yuan for misleading assurances about the safety of the 737 MAX (File photo / Reuters)

In a statement, the Securities and Exchange Commission said Boeing had agreed to accept penalties to resolve allegations of “negligent violations of the anti-fraud provisions (US securities laws)” in which Boeing and its leaders “put profits over people. “

Former Boeing CEO Dennis Muilenburg also agreed to pay $1 million to settle the same charges in a civil case, AFP reported. The settlement is the latest blow to Boeing over the 737 MAX after the Lion Air crash in Indonesia in October 2018 and the Ethiopian Airlines crash in Ethiopia in March 2019. . The two accidents together killed almost 350.

A month after the Lion Air crash, Muilenburg agreed to a Boeing press release that “selectively emphasizes certain facts” suggesting that pilot error and poor maintenance of the plane caused the crash. The press release also attests to the safety of the aircraft, but does not disclose that Boeing is known to have a safety issue with a critical flight processing system, the Maneuvering Characteristics Acquisition System (MCAS), and that in the process of redesigning it.

After the second crash, Boeing and Muilenburg assured the public that there were “no surprises or loopholes” in the federal certification of the 737 MAX, despite being given vastly different information, the SEC said.

“In times of crisis and tragedy, it is especially important for public companies and executives to provide full, fair and true disclosure to the market,” SEC Chairman Gary Gensler said in a press release. “Boeing and its former CEO Muilenburg failed in this most basic responsibility. They misled investors by offering assurances about the safety of the 737 MAX even though they knew there were serious safety concerns.”

Editor: Qin Yingwen

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