Boeing fined $200 million by US SEC for misleading investors about safety of 737 MAX

Boeing fined $200 million by US SEC for misleading investors about safety of 737 MAX

The fine will be paid by the aircraft manufacturing corporation to resolve civil allegations brought by the US Securities and Exchange Commission.

FPJ Web DeskUpdated: Friday, September 23, 2022, 08:11 AM IST
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Boeing fined $200 million by US SEC for misleading investors about safety of 737 MAX | Photo credit: AFP

United States securities regulators have fined Boeing $200 million. After the two fatal incidents in 2018 and 2019, Boeing was penalised for giving investors false information about the 737 MAX's safety.

The fine will be paid by the aircraft manufacturing corporation to resolve civil allegations brought by the US Securities and Exchange Commission. Notably, the two catastrophic incidents caused Boeing's 737 MAX to be grounded for nearly 20 months. Notably, these two accidents resulted in the deaths of almost 350 passengers.

According to news agency AFP, Dennis Muilenburg, the former CEO of Boeing, also consented to pay USD $1 million to resolve the identical claims in the civil lawsuit. The Lion Air Flight 610 Boeing 737 MAX crashed into the Java Sea on October 29, 2018. 13 minutes after takeoff is when the incident happened. All 189 passengers died in the catastrophe, which claimed the lives of both passengers and crew.

On March 10, 2019, a scheduled international passenger flight from Addis Ababa Bole International Airport in Ethiopia to Jomo Kenyatta International Airport in Nairobi, Kenya, crashed. This incident involved a Boeing 737 MAX 8. The lives of all 157 people on board were lost. It has been the deadliest crash for Ethiopian Airlines thus far.

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