Boeing to Pay $200 Million to Settle SEC Charges that it Misled Investors about the 737 MAX

SEC

The Securities and Exchange Commission today charged The Boeing Company and its former CEO, Dennis A. Muilenburg, with making materially misleading public statements following crashes of Boeing airplanes in 2018 and 2019. The crashes involved Boeing’s 737 MAX airplane and a flight control function called the Maneuvering Characteristics Augmentation System (MCAS). According to the SEC’s orders, after the first crash, Boeing and Muilenburg knew that MCAS posed an ongoing airplane safety issue, but nevertheless assured the public that the 737 MAX airplane was “as safe as any airplane that has ever flown the skies.” Later, following the second crash, Boeing and Muilenburg assured the public that there were no slips or gaps in the certification process with respect to MCAS, despite being aware of contrary information. read more »

SEC Charges Compass Minerals for Misleading Investors about Its Operations at World’s Largest Underground Salt Mine

SEC

The Securities and Exchange Commission today announced settled charges against Compass Minerals International Inc. for misleading investors about a technology upgrade that the company claimed would reduce costs at its most significant mine, but in reality, had increased costs, and for failing to properly assess whether to disclose the financial risks created by the company’s excessive discharge of mercury in Brazil. Compass is ordered to pay $12 million to settle the charges. read more »

Glencore Gets $486 Million Criminal Penalty in Oil Pricing Case

BLOOMBERG

The Swiss commodities trading firm, which pleaded guilty in May, was sentenced Friday by US District Judge Sarala V. Nagala in Hartford, Connecticut. She ordered Glencore to pay a $341.2 million fine and give up the $144.4 million that it made on the scheme, following the terms of its plea agreement, US prosecutors said. read more »