Boeing Faces SEC Investigation Into Its 737 Max Disclosures
Notably, Boeing currently faces the SEC probe in disclosures about 737 Max Troubles. Thus, the SEC investigates whether the company shared enough with investors.
It should be noted that the US Securities and Exchange Commission UU He is investigating whether Boeing Co. correctly revealed the problems related to the 737 Max line plane. This according to people familiar with the issue, as regulators intensify their control of the company after two fatal crashes. That being the case, officials in the SEC’s compliance division are examining whether Boeing adequately communicated with shareholders about the material problems with the plane, said the people who asked not to be named because the investigation is not public.
Likewise, people are also reviewing the aircraft manufacturer’s accounting to make sure that their financial statements adequately reflect possible problems.
Investigations in progress
It is necessary to emphasize that the SEC investigation is in its early stages and the regulator’s investigations often do not lead to accusations of misconduct. Similarly, the investigation deepens the crisis that Boeing faces since a 737 Max crashed in Ethiopia on March 10. Do not forget that this accident, which occurred after the fatal accident in October in the waters of Indonesia, prompted regulators around the world to land the plane.
Boeing has already faced questions about its level of disclosures. In a May 5 statement, he revealed that he knew that a cabin alert was not working properly for more than a year before the company shared its findings with the airlines or the United States Federal Aviation Administration.
Federal authorities have been conducting a criminal investigation of Boeing related to the crashes. While the investigation is investigating the certification process for the new 737 Max aircraft, the SEC’s investigation focuses on whether Boeing complied with its obligations to inform investors as a public company.
Source: Benjamin Bain and Matt Robinson | Bloomberg