SEC investigating Boeing’s statements on its safety practices, Bloomberg News reports

By Thomson Reuters May 9, 2024 | 3:12 PM

(Reuters) -The U.S. Securities and Exchange Commission is investigating statements made by Boeing Co. about its safety practices after a mid-air panel blowout on a 737 MAX flight in January, Bloomberg News reported on Thursday.

The SEC will examine whether the planemaker or its executives misled investors in violation of the Wall Street regulator’s rules, the report said, citing three people familiar with the development.

Boeing and the SEC declined Reuters requests for comment.

An Alaska Airlines-operated MAX 9 jet experienced a mid-air cabin panel blowout in January, which led to the U.S. Federal Aviation Administration grounding 171 aircraft for about three weeks.

The SEC probe comes after the FAA launched its own investigation in April after a Boeing whistleblower claimed the company had disregarded safety and quality concerns in the production of its 787 and 777 jets.

Boeing has been grappling with a full-blown safety crisis that has undermined its reputation following the January incident. The company has faced Senate hearings and conducted a shakeup of its top management.

The planemaker’s deliveries fell by half in March as U.S. regulators imposed production curbs and Boeing reported its first quarterly revenue drop in seven quarters.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Pooja Desai)