Boeing settles SEC allegations about the 737 Max for $200 million.

Boeing Co. will pay $200 million to settle claims that the company deceived customers about the reliability of its 737 Max .

After two of the planes crashed, killing 346 passengers, Boeing Co. will pay $200 million to settle claims that the company and its former CEO deceived customers about the reliability of its 737 Max.The Securities and Exchange Commission charged the aircraft manufacturer and former CEO Dennis Muilenburg with making general public remarks about the plane and the automated flight-control system that was implicated in the Indonesia and Ethiopian crashes on Thursday.While neither Boeing nor Muilenburg admitted to wrongdoing, they agreed to settle and pay penalties, including $1 million to be paid by Muilenburg, who was deposed in December 2019, nine months after the second crash.Boeing and Muilenburg knew that the flight system, commonly referred to as MCAS, was a safety issue, but told the public that the plane was safe, according to the SEC.

Boeing and Muilenburg earned more money by deception investors about the reliability of the 737 Max, all in an attempt to improve Boeing's image after the crashes, according to Gurbir Grewal, head of the SEC's enforcement division.In reaction to these accidents, Boeing announced that it had made large and deep changes throughout our company to improve safety and quality.According to the Arlington, Virginia-based firm, todays settlement is part of a larger effort to successfully resolve outstanding litigation problems relating to the 737 Max accidents in a manner that serves the best interests of our shareholders, employees, and other stakeholders.In October 2018, an updated Max launched by Indonesias Lion Air crashed into the Java Sea, and another Max launched by Ethiopian Airlines nose-dived into the ground near Addis Ababa in March 2019.

Regulators around the world halted the plane for almost two years before Boeing made updates to the flight-control system, which was designed to minimize aerodynamic stalls when the nose points up too high.Both the planes that crashed were in danger of stalling, according to the other.In a press release published by the SEC, Boeing alleged Boeing of deceitful investors after the Indonesia crash, in which the plane was declared to be as safe as any plane that has ever touched the skies.Boeing knew when it said that MCAS would need to be fixed and was already implementing changes, according to the SEC.

Boeing, however, was reportedly able to get documents showing that it did not disclose important information about MCAS to the Federal Aviation Administration by then, according to the SEC.Last year, Boeing and the Justice Department signed a separate $2.5 billion deal.The bulk of the money went to airlines whose Max jets were grounded.