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[Fox Business] SEC to investigate Boeing over statements on safety practices: report
The U.S. Securities and Exchange Commission (SEC) has opened an investigation into Arlington, Virginia-based Boeing Co. for statements the company made regarding safety practices, following an incident where a panel blew off an Alaska Airlines 737 Max 9 16,000 feet above Oregon in January.
Reuters reported that the SEC investigation will look into whether Boeing or its executives made statements misleading investors, according to a report from Bloomberg News, based on three sources familiar with the development.
Boeing declined to comment on the matter when Fox News Digital reached out to the company, while the SEC did not respond to requests for comment.
In January, a 737 Max 9 operated by Alaska Airlines was flying 16,000 feet above Oregon when a panel plugging the space reserved for an unused emergency door blew off the jetliner. Though pilots were able to land the Boeing 737 Max 9 safely, issues surrounding the plane came crashing down on the aircraft’s manufacturer.
In March, the Department of Justice opened a criminal investigation into the incident.
The FBI also began notifying passengers that they may be a “possible victim of a crime.”
Boeing recently failed 33 aspects of a federal audit with a total of 97 points of noncompliance, according to The New York Times. The company passed 56 points of the audit.
FLIERS TRYING TO AVOID BOEING PLANES TURNING TO PRAYER AND ANTI-ANXIETY MEDS: REPORT
Just last month, the Federal Aviation Administration (FAA) opened an investigation into Boeing after the company voluntarily informed the agency it may not have completed required inspections to confirm adequate bonding and grounding where the wings join the fuselage on certain 787 Dreamliner airplanes.
The FAA confirmed to Fox Business in a statement that they are investigating whether Boeing completed the inspections and whether company employees falsified aircraft records.
“As the investigation continues, the FAA will take any necessary action — as always — to ensure the safety of the flying public,” the FAA said.
WHISTLEBLOWER TESTIFIES BOEING IS PRODUCING DEFECTIVE PLANES, SAYS HE’S RECEIVED PHYSICAL THREATS
The FAA added that at the same time, Boeing is also reinspecting all 787 airplanes still within the production system and must also create a plan to address the in-service fleet.
Along with a safety crisis that has tarnished the company’s reputation, Boeing has faced Senate hearings and conducted a shakeup of its top management.
The investigation comes after several mishaps involving Boeing aircrafts over the past few months.
Fox News has tracked at least four incidents with Boeing aircraft in January, two in February and as many as 10 as of mid-March.
Since then, a wave of issues has continued to plague Boeing.
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In a matter of two months, two Boeing whistleblowers — Joshua Dean and John Barnett — died, and in late April, Southwest Airlines announced it was pulling out of several airports as it works through the financial fallout from Boeing delays.
In early March, United Airlines announced it was temporarily pausing pilot hiring due to new aircraft certification and manufacturing delays at Boeing. It also recently asked pilots to take unpaid time off as delays persist.
Also in March, Boeing’s deliveries fell by half and the company reported its first quarterly revenue drop in nearly two years.
FOX Business News’ Stephen Sorace and Stepheny Price contributed to this report.
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