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SEC opens probe into Boeing's disclosures about grounded 737 Max jetliner

The SEC inquiry is in its early stages and the regulator's investigations often don't lead to allegations of misconduct

Bloomberg 

Boeing 737 MAX
Boeing 737 MAX

The US Securities and Exchange Commission (SEC) 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 people who asked not to be named because the probe isn't public. 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.

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The SEC inquiry is in its early stages and 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 March 10. That wreck, which followed a deadly October crash in the waters off Indonesia, prompted regulators around the world to ground the jet. Boeing didn't immediately comment, while SEC spokeswoman Judith Burns declined to comment.

First Published: Sat, May 25 2019. 03:21 IST
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