Boeing and its former chief executive Dennis Muilenburg made “materially misleading public statements” following crashes of the Boeing aircraft in 2018 and 2019, the SEC said on Thursday. The crashes involving the Boeing 737 Max jets were blamed largely on failures of the flight control function called the Manoeuvring Characteristics Augmentation System (MCAS). They misled investors by providing assurances about the safety of the 737 Max, despite knowing about serious safety concerns.”The 737 Max was grounded in 2019 after two crashes that killed 346 people in Indonesia and Ethiopia in 2018 and 2019, respectively. The SEC’s orders against Boeing and Mr Muilenburg said they negligently breached the antifraud provisions of federal securities laws. Without admitting or denying the SEC’s findings, Boeing and Mr Muilenburg consented to cease-and-desist orders that include penalties of $200m and $1m, respectively.

Source: Ethiopian News September 23, 2022 06:56 UTC