Search

06 Oct 2022

Boeing agrees multimillion-dollar payout over plane safety claims

Boeing agrees multimillion-dollar payout over plane safety claims

Boeing is to pay 200 million dollars (£178m) to settle allegations that the company and its former CEO misled investors about the safety of its 737 Max after two of the airliners crashed, killing 346 people.

The Securities and Exchange Commission (SEC) said on Thursday that it charged the aircraft maker and former CEO Dennis Muilenburg with making significant misleading public statements about the plane and an automated flight-control system that was implicated in the crashes.

Neither Boeing nor Muilenburg admitted wrongdoing, but they agreed to orders that include penalties of 200 million dollars for Boeing and 1 million for Muilenburg, who was ousted in December 2019, nine months after the second crash.

The SEC said Boeing and Muilenburg knew that the flight system, known as MCAS, posed a safety issue but promised the public that the plane was safe.

The SEC said they also falsely claimed that there had been no gaps in the process of certifying the plane in the first place.

“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” after the crashes, said Gurbir Grewal, director of the SEC’s enforcement division.

Boeing reached a separate 2.5 billion dollar settlement with the Justice Department last year. Most of that money went to airlines whose 737 Max jets were grounded for nearly two years.

To continue reading this article,
please subscribe and support local journalism!


Subscribing will allow you access to all of our premium content and archived articles.

Subscribe

To continue reading this article for FREE,
please kindly register and/or log in.


Registration is absolutely 100% FREE and will help us personalise your experience on our sites. You can also sign up to our carefully curated newsletter(s) to keep up to date with your latest local news!

Register / Login

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.