What SEC disclosure failures did Boeing face after 2018 and 2019 crashes?

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Boeing and Former CEO Charged with Misleading Investors After 737 MAX Crashes

Boeing Co. will pay US$200 million to settle civil charges brought by the US Securities and Exchange Commission (SEC) for allegedly misleading investors about the safety of its 737 MAX aircraft following two fatal crashes. Former Boeing Chief Executive Dennis Muilenburg has also agreed to pay US$1 million to resolve similar charges. The SEC's action stems from public statements made by Boeing and Muilenburg after the 2018 and 2019 crashes that killed a total of 346 people.
Misleading Statements on MCAS Safety

Following the first crash in 2018, the SEC found that Boeing and Muilenburg were aware that the Maneuvering Characteristics Augmentation System (MCAS) presented an ongoing safety risk. Despite this knowledge, they publicly assured investors that the 737 MAX was "as safe as any that has ever flown the skies." This representation is at the core of the SEC's allegations of misleading disclosures.
Assurances Regarding Certification Process

After the second crash in 2019, the SEC further alleged that Boeing and Muilenburg provided public assurances that there were no deficiencies or gaps in the certification process related to the MCAS. These statements were allegedly made even though both the company and its former CEO were aware of information that contradicted these claims. The SEC stated that these actions constituted materially misleading public statements.
Settlement Terms and Investor Compensation

Neither Boeing nor Muilenburg admitted or denied the SEC's findings as part of the settlement. The agreement includes the establishment of a fund intended to compensate investors who were harmed by the alleged misrepresentations. This settlement is part of Boeing's broader efforts to resolve legal matters stemming from the 737 MAX accidents, which previously included a US$2.5 billion settlement with the US Justice Department in January 2021.
Allegations of Prioritizing Profits Over Safety

Gurbir Grewal, director of the SEC’s Enforcement Division, stated that Boeing and Muilenburg allegedly prioritized profits over people by misleading investors about the 737 MAX's safety. This conduct, according to the SEC, was an attempt to rehabilitate Boeing's public image following the two tragic accidents that resulted in significant loss of life and widespread grief.

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What SEC disclosure failures did Boeing face after 2018 and 2019 crashes?

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