AP Photo/Ted S. Warren
- The Securities and Exchange Commission (SEC) is investigating whether Boeing gave shareholders sufficient information about problems with its 737 Max aircraft, Bloomberg reported.
- The agency is also reportedly examining financial documents from the aerospace manufacturer to determine whether it properly accounted for the potential impact of issues associated with the 737 Max.
- The SEC declined to comment. Boeing did not immediately respond to Business Insider’s request for comment.
- Visit Business Insider’s homepage for more stories.
The Securities and Exchange Commission (SEC) is investigating whether Boeing gave shareholders sufficient information about problems with its 737 Max aircraft, Bloomberg reported.
The agency is also reportedly examining financial documents from the aerospace manufacturer to determine whether it properly accounted for the potential impact of issues associated with the 737 Max.
The SEC declined to comment. Boeing did not immediately respond to Business Insider’s request for comment.
Boeing has come under scrutiny following two deadly crashes involving its 737 Max aircraft. In October, a Lion Air flight crashed and killed all 189 people on board, and in March, an Ethiopian Airlines flight crashed and killed all 157 people on board.
The 737 Max has been grounded in many countries since March as technology designed to prevent the aircraft from stalling has come under scrutiny. During both crashes, the technology activated because of false sensor readings and pushed the planes downward at too steep of an angle, and media reports have raised questions about how Boeing developed and communicated about the technology. Boeing has finished developing a software update it will give customers to fix the issue, but the update must first receive approval from the Federal Aviation Administration.
The fallout from the crashes has reportedly cost Boeing at least $1 billion.
Read Bloomberg’s full story here.
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See Also:
- Southwest Airlines is going to allow people who don’t want to fly on the Boeing 737 Max to switch planes for free
- The FAA said the Boeing 737 Max could fly again in the US in a matter of weeks, according to multiple sources
- Boeing could have prevented 2nd 737 Max crash by listening to pilots, a union said as it accused the company of a ‘poisoned, diseased philosophy’
Source: Business Insider – mmatousek@businessinsider.com (Mark Matousek)