Saturday 25 May 2019 1:27 pm

Boeing under investigation by SEC about disclosures to investors regarding the 737 Max aircraft


Sport and Business Reporter at City AM. Email: michael.searles@cityam.com

Sport and Business Reporter at City AM. Email: michael.searles@cityam.com

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The Securities and Exchange Commission (SEC) in the US has opened a probe into Boeing regarding disclosures made to investors about its 737 Max aircraft. 

The investigation, reported by Bloomberg, adds pressure to the company and is separate from the criminal investigation being conducted by US federal authorities into the initial certification that the planes were safe to fly.

Read more: Regulators to discuss when to let Boeing 737 Max back in the skies 

Two 737 Max carriers crashed in the past year, killing all 346 people on board both, with the planes grounded by aviation authorities from March. 

The SEC's investigation is in its formative stages and may not result in any allegations of wrongdoing.

Both the SEC and Boeing have declined to comment so far.

The jet maker is under scrutiny regarding what it knew about software issues that proved to be fatal following crashes in Indonesia and Ethiopia. 

Earlier this month, the company revealed it had been aware of a problem with an important safety feature on the plane not working as intended since 2017. 

They claimed that an error warning light for pilots was not in operation across the entire fleet as it should have been, but that flaw was not communicated to airlines or the US Federal Aviation Administration until the Indonesian crash in October last year.

Read more: Boeing completes 737 Max software update


The 737 Max has been grounded since March and there is currently no timetable for its return, although it recently claimed to have rectified the software issues. 

Boeing are yet to file to the FAA that it has been fixed. 

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