The American manufacturer of space, military and aviation equipment will pay investors compensation for
What is known
This decision was taken by the American Commission onsecurities and exchanges. The regulator fined the corporation for misleading investors about the safety of the Boeing 737 MAX aircraft. The fine will be $200 million. Former Boeing CEO Dennis A. Muilenburg was fined $1 million.
Boeing 737 crashed in Indonesia in October 2018MAX by Lion Air. The crash killed 189 passengers. Six months later, the same aircraft, but already from Ethiopian Airlines, crashed in Ethiopia. 157 people became victims.
The corporation said that the Boeing 737 MAX is the samesafe, like any other aircraft. The Securities and Exchange Commission claims that after two plane crashes, the company continued to make false claims about the safety of the aircraft, although it knew about the problem with the maneuvering correction system.
After the plane crash in Indonesia Dennis Muilenburgapproved a press release stating that poor maintenance and pilot error were a possible cause of the plane's crash. However, even then, the company launched the process of redesigning the maneuvering correction system, but did not notify about it.
The US Securities and Exchange Commission saysthat Boeing and Dennis Muilenburg put profit ahead of people and misled investors about safety. The defendants agreed to pay $200 million and $1 million, respectively, but did not acknowledge or deny the regulator's findings.