Boeing pays $200 million to settle SEC charges over 737 Max safety claims. The SEC charged the aircraft maker and its former CEO with making misleading statements about the plane, which was implicated in two crashes that killed 346 people.
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The latest problem comes as Boeing has been under intense scrutiny since two accidents in 2018 and 2019 involving its 737 Max planes killed 346 people. Authorities said the accidents were triggered by design flaws in its flight control software.
It agreed to pay $500 million to victims' beneficiaries as part of its broader $2.5 billion Justice Department settlement. It reached a $237.5 million settlement with shareholders over board oversight of 737 MAX issues.
Jury Finds Former Boeing Pilot Not Guilty of Fraud in 737 Max Case. The pilot, Mark Forkner, was the only person to face criminal charges for flaws that resulted in two fatal crashes of one of Boeing's most important planes.
But the families sued, arguing that the agreement was a “sweetheart deal” made behind closed doors, and that under the Crime Victims Rights Act, they should have been allowed a seat at that table.
Boeing won immunity from criminal prosecution as part its $2.5 billion January 2021 Justice Department deferred prosecution agreement over a 737 MAX fraud conspiracy charge related to the plane's flawed design.
The accidents and grounding cost Boeing an estimated $20 billion in fines, compensation and legal fees, with indirect losses of more than $60 billion from 1,200 cancelled orders. The MAX resumed commercial flights in the U.S. in December 2020, and was recertified in Europe and Canada by January 2021.
Boeing attorneys say the crash victims died instantaneously when the Ethiopian Airlines jet slammed into the ground. They argue in court documents that any pain and suffering they may have felt before impact aren't legally relevant for calculating damages.
ARLINGTON, Va. (AP) — Boeing rewarded CEO David Calhoun with compensation valued at $22.5 million for 2022 but won't pay him a $7 million bonus because the company will fail to get its new 777X jetliner in service by the end of this year.
Boeing produces commercial and military aircraft, weapons systems, strategic defense and intelligence systems, and related products and services. The Defense, Space and Security unit has overtaken Commercial Airplanes as Boeing's largest revenue source.
Hefty defense and space write-offsBoeing lost $149 million in the second quarter, or 25 cents per share, on revenue of $19.8 billion. That's down from a profit of $160 million in the same period last year, which was the last time Boeing showed a profit.
Boeing CEO & LeadershipDave Calhoun's employees rank Boeing in the Top 30% for Compensation, in the Top 35% for Perks And Benefits, and in the Top 50% for Happiness.
The company generated $2.6 billion of free cash flow in the second quarter, ahead of analyst forecasts, and reiterated its full-year guidance of between $3 billion and $5 billion of free cash flow. Boeing shares surged nearly 9% to end the day at $232.80, the stock's highest closing price since November 2021.