By Davit Kirakosyan
Today, The Securities and Exchange Commission charged The Boeing Company (NYSE:) and its former CEO, Dennis A. Muilenburg, with making materially misleading public statements following crashes of Boeing airplanes in 2018 and 2019.
According to the SEC’s orders, after the first crash, Boeing and Muilenburg knew that the Maneuvering Characteristics Augmentation System (MCAS) posed an ongoing airplane safety issue, but nevertheless assured the public that the 737 MAX airplane was safe. Following the second crash, the company and Muilenburg misled investors by providing assurances that there were no slips or gaps in the certification process with respect to MCAS, despite knowing about serious safety concerns.
The company and Muilenburg consented to cease-and-desist SEC orders that include penalties of $200 million and $1 million, respectively.