Boeing fined for cheating on crashed 737 Max
Three years after the fatal crash of two Boeing 737 Max aircraft, the US Securities and Exchange Commission has fined the aircraft manufacturer Boeing $200 million (around CHF 195).
Rescuers search for survivors in the wreckage of the Boeing 737 Max 8 that crashed in Kenya in 2019. 149 passengers and 8 crew members died in the accident.
Boeing “negligently” violated the anti-fraud provisions of the US securities laws, the SEC said in a statement released on Thursday. The company allegedly misled the public about the safety of the 737 Max aircraft after the deadly crashes in 2018 and 2019.
Boeing put “profits over lives,” the SEC said. The aircraft manufacturer agreed to pay the fine to end the case. In addition, former Boeing CEO Dennis Muilenburg agreed to pay $1 million to settle a civil lawsuit against him over the same allegations.
A total of 346 people died in the crashes of Boeing 737 Max planes operated by Indonesian airline Lion Air in October 2018 and Ethiopian Ethiopian Airlines in March 2019.
Other machines of the type were then not allowed to fly for months until the cause was found. As it turned out later, among other things, the inadequate training of the pilots with a flight assistance system had led to the crash.
A month after the first crash, a press release approved by Boeing CEO “selectively underscored certain facts,” the SEC statement said on Thursday.
In addition, human error on the part of the pilot and poor maintenance of the machine were presented as partial causes of the crash.
In addition, the safety of the aircraft type was assured in this notification. In doing so, Boeing withheld the fact that the company was already aware at the time that an important assistance system had safety deficiencies and was therefore being revised at the time of publication.
The company Boeing and CEO Muilenburg had “violated their most important duty” and “misled investors” with their soothing statements about the safety of the 737 MAX machines.