Boeing will pay $200 million over 737 Max crashes to settle SEC charges The SEC charges Boeing and its former CEO Dennis Muilenburg "with making materially misleading public statements" following 737 Max crashes in 2018 and 2019 that killed 346 people.

Boeing will pay $200 million to settle SEC charges over 737 Max crashes

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STEVE INSKEEP, HOST:

Boeing will not admit wrongdoing but will pay $200 million to settle charges of securities fraud related to the 737 Max. Two of the jetliners crashed in recent years, killing 346 people. The Securities and Exchange Commission says Boeing and its former CEO misled investors about the plane's safety. Here's NPR's David Schaper.

DAVID SCHAPER, BYLINE: The crashes of 737 Max passenger jets in Indonesia in 2018 and Ethiopia in 2019 were primarily caused by a defective automated flight control system. The FCC alleges that after the first crash, Boeing and its then-CEO Dennis Muilenburg knew that the flawed system was a safety risk. Yet they told the public that the 737 Max was, quote, "as safe as any" airplane that has ever flown the skies. Then the second plane crashed. Muilenburg later told investors that Boeing followed the normal process for certifying the plane, even though the SEC says that the company had already uncovered evidence that it had deceived the FAA. In a statement, an SEC official says Boeing and Muilenburg put profits over people by misleading investors about the safety of the 737 Max, all in an effort to rehabilitate Boeing's image. In addition to Boeing's $200 million penalty, Muilenburg will pay $1 million. But neither admits to any wrongdoing. Attorneys for the family members of some of the plane crash victims called Muilenburg's $1 million fine an insult in light of the $62 million golden parachute he reportedly received when he was fired. Boeing says in a statement that the company has made broad and deep changes across the company to improve safety and oversight. And this settlement fully resolves the SEC matter.

David Schaper, NPR News.

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