Boeing Reaches $200 Million Settlement With Regulators Over Its 737 Max

The $200 million settlement was reached by Boeing and the U.S. Securities and Exchange Commission to end an investigation into the company's dealings with investors.

Dennis A. Muilenburg agreed to pay a $1 million fine as part of a separate settlement with the Securities and Exchange Commission.

The S.E.C. said Boeing and Mr. Muilenburg misled investors after the first jet crashed in Indonesia by suggesting that human error was to blame and omitting the company's own concerns with the plane's flight control system. The S.E.C. said that Boeing lied about the safety of the planes after the second crash.

In times of crisis and tragedy, it is important that public companies and executives give full, fair and truthful disclosures to the markets. The Boeing Company and Dennis Muilenburg failed in this most basic obligation.

The company did not admit or deny the facts. In a statement, Boeing said that it had improved safety processes and oversight of safety issues since the crashes and that the settlement was part of a larger effort to resolve outstanding legal matters.

Boeing said it has made broad and deep changes in response to the accidents.

A deferred prosecution agreement was reached between the aircraft manufacturer and federal prosecutors. Boeing was charged with conspiring to defraud the FAA and providing money to the families of people who died in the crashes.

The Max was banned around the world after the second crash. The plane flew again at the end of 2020 after Boeing made changes to the plane. Since that time, the Max has flown millions of passengers. Delta Air Lines placed an order for 100 jets this summer after it resumed flights.

The S.E.C. noted that after the Lion Air crash, Mr. Muilenburg approved a news release that didn't mention that Boeing had found an ongoing safety issue with the planes. Boeing said the plane had crashed because of pilot error or poor maintenance.

Despite misleading statements about the safety of the Max planes, Boeing continued to sell bonds to investors. It is against the law to sell bonds or stocks while giving investors misleading information.

The S.E.C. order requires Boeing to stop misleading investors.

The families of some of the people who were killed in crashes criticized the Justice Department for agreeing to the settlement. Some of the families are trying to raise awareness of their concerns about the plane's safety, including an important and necessary update to its pilot alert system.