Friday 18 October 2019

Boeing faces SEC probe into its 737 Max disclosures

 

Boeing 737 MAX jets sit parked at a facility in Tulsa, Oklahoma. Photo: American Airlines/Handout via REUTERS
Boeing 737 MAX jets sit parked at a facility in Tulsa, Oklahoma. Photo: American Airlines/Handout via REUTERS

Ben Bain and Matt Robinson

The US Securities and Exchange Commission is investigating whether Boeing properly disclosed issues tied to the grounded 737 Max jetliner, according to people familiar with the matter, as regulators intensify their scrutiny of the company following two deadly crashes.

Officials in the SEC's enforcement division are examining whether Boeing was adequately forthcoming to shareholders about material problems with the plane, said the sources.

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The agency is also reviewing the aircraft manufacturer's accounting to make sure its financial statements have appropriately reflected potential impacts from the problems, the people said. The regulator's investigations often don't lead to allegations of misconduct.

Still, the probe deepens the crisis facing Boeing since a 737 Max crashed in Ethiopia on March 10 last year. That wreck, which followed a deadly October crash in Indonesia, prompted regulators around the world to ground the jet. Boeing and the SEC declined to comment.

Bloomberg

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