Shulou(Shulou.com)11/24 Report--

CTOnews.com, September 23 (Xinhua)-- the Securities and Exchange Commission (SEC) said Boeing will pay $200 million to settle many of SEC's charges. SEC believes that Boeing's 737 MAX aircraft is misleading to investors. In addition, the company's former CEO will be fined $1 million.

CTOnews.com learned that an Indonesian Lion Airlines Boeing 737 MAX 8 crashed in October 2018, leaving no one on board and an Ethiopian Airlines Boeing 737 MAX 8 on March 10, 2019, with no one on board.

After the first accident, Boeing hinted that the cause of the crash was human and had nothing to do with the plane. After the second accident, Boeing made a similar statement, which was considered to mislead investors.

Investigations revealed that the crashes were related to a flight control system called maneuverability Enhancement system (MCAS). After the first crash, Boeing and Mullenberg knew that the MCAS posed an ongoing aircraft safety problem, but assured the public that "the MAX is as safe as any aircraft flying in the sky," SEC said.

After the second crash, Boeing and Muilenburg assured the public that although they knew the real reason, they "did not have any omissions or loopholes in the MCAS certification process."

Boeing now says it has made "fundamental changes to strengthen the safety process," adding that "the settlement is part of a broader effort by the company to responsibly resolve outstanding legal issues related to the 737 MAX accident."

SEC then opened a civil complaint against its 737MAX, which was grounded for 20 months after killing 346 people in two crashes.

The Securities and Exchange Commission also said Dennis Mullenberg, former chief executive of Boeing, had agreed to pay $1 million.

Gary Gensler, chairman of the Securities and Exchange Commission, said in a statement: "it is particularly important for listed companies and executives to provide comprehensive, fair and true disclosure to the market in times of crisis and tragedy," adding that Boeing and Muilenburg "did not meet this most basic obligation".

The Securities and Exchange Commission said Boeing and Muilenburg did not acknowledge or deny the SEC's findings. The regulator said it would set up a fund for damaged investors.

In January 2021, Boeing agreed to pay $2.5 billion in fines and compensation to resolve the U.S. Department of Justice's criminal investigation into the 737 MAX crash.

The Justice Department's solution exempted Boeing from prosecution, including a $243.6 million fine, $1.77 billion in compensation for airlines and a $500 million crash victims fund for allegations of fraudulent conspiracy related to aircraft design defects.

Boeing fired Mullenberg in December 2019 after the company clashed with regulators over the return time of the 737 MAX.

Gurbir Grewal, director of enforcement at the Securities and Exchange Commission, said: "Boeing and Mullenberg put profits above people and misled investors about the safety of 737 MAX, all in an attempt to restore Boeing's image after two tragedies that killed 346 people and caused immeasurable grief to many families."

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.