Boeing to pay US$ 200 million to settle US CVM allegations over 737 MAX

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Boeing will pay $200 million to settle civil charges with the US Securities and Exchange Commission (SEC) of misleading investors about the 737 MAX aircraft, the regulator said on Thursday.

The aircraft was out of service for 20 months after two fatal accidents killed 346 people.

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Boeing knew after the first accident that a flight control system posed a safety issue, but assured the public that the 737 MAX plane was “as safe as any plane that has ever flown in the skies,” the SEC said in announcing the deal. .

It also said former Boeing chief executive Dennis Muilenburg had agreed to pay $1 million to settle the charges.

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Both the company and Muilenburg did not admit or deny the SEC’s findings, the agency said. A fund will be established for the benefit of harmed investors, the institution said.

Boeing said it made “fundamental changes that strengthened our safety processes.” The manufacturer added that the “agreement is part of a broader effort by the company to resolve outstanding legal issues related to the 737 MAX accidents.”

The accidents were linked to a flight control system called MCAS. The SEC said that “after the first accident, Boeing and Muilenburg knew that MCAS posed an ongoing aircraft safety issue, but nevertheless assured the public that the 737 MAX aircraft was ‘as safe as any that has ever flown in the United States. heavens”.

The first accident, on a Lion Air flight in Indonesia, occurred in October 2018, while the second accident, on an Ethiopian Airlines flight in Ethiopia, in March 2019.

The accidents cost Boeing more than $20 billion and prompted Congress to pass sweeping legislation that changes the way the US aviation regulator, the FAA, certifies new aircraft.

In January 2021, Boeing agreed to pay $2.5 billion in fines and compensation to settle a US Department of Justice criminal investigation into the 737 MAX accidents.

The settlement included a $243.6 million fine, $1.77 billion in compensation to airlines and a $500 million fund for accident victims.

Source: CNN Brasil

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