Boeing Faces $51M Penalty For Arms Exports Violations To China, Russia
Portfolio Pulse from Benzinga Neuro
Boeing Co. (NYSE:BA) has agreed to a $51 million settlement with the U.S. State Department for unauthorized exports of technical data to China and Russia, violating the Arms Export Control Act and International Traffic in Arms Regulations. The violations, occurring between 2013 and 2017, were disclosed by Boeing between 2017 and 2022. The settlement includes a two-year oversight by a special compliance officer and a $24 million suspension of the penalty if used to enhance Boeing's compliance program. This follows other regulatory challenges for Boeing, including a grounding order for some 737 Max 9 jets.
March 01, 2024 | 3:30 am
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Boeing Co. faces a $51 million penalty for unauthorized technical data exports to China and Russia, with a portion suspended for compliance enhancements. This adds to Boeing's recent regulatory challenges.
The $51 million penalty for violating export control laws directly impacts Boeing's financials and could further tarnish its reputation, already strained by recent regulatory issues. The settlement and the requirement for enhanced compliance measures indicate significant legal and operational challenges for Boeing, likely affecting investor confidence and stock price in the short term.
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