The SEC said Thursday that Boeing will pay $200 million and then-CEO Dennis Muilenburg will pay $1 million to settle charges.
It is important that public companies and executives give full, fair, and truthful disclosures to the markets during times of crisis and tragedy. The Boeing Company and its former CEO failed in this most basic obligation, according to the SEC chair.
The two crashes, one in October of last year and the other in March of this year, resulted in a worldwide ban on the jetliners. The ground was lifted in the late 2020s.
Muilenberg was fired by Boeing in the middle of the grounded planes and comments he made about when regulators would clear the planes to fly again. The manufacturer's relationship with the FAA was strained due to the comments.
Boeing said in a statement that the settlement is part of the company's broader effort to resolve outstanding legal matters in a way that serves the best interests of the company's shareholders, employees, and other stakeholders.
The agency said that neither Boeing nor Muilenburg denied the findings.
In January of 2021, Boeing agreed to pay over $2 billion to resolve a criminal investigation.
Management, design, and regulatory failures were found in the development and certification of the MAX. The legislation gave more control over the process to the FAA.