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Boeing Agrees to Arms-Control Fine

Boeing Agrees to Arms-Control Fine

The aerospace giant allegedly sold planes overseas containing a computer chip with military applications.
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The aerospace giant allegedly sold planes overseas containing a computer chip with military applications.

Boeing (BA) - Get Free Report has agreed to pay $15 million to settle State Department charges that it sold products with military applications abroad, according to media reports.

The Chicago-based aerospace giant allegedly broke the Arms Control Export Act when it delivered 94 commercial jets to buyers overseas. Nineteen went to China. The jets contained a computer chip that is also used in missile guidance systems. Boeing shipped them between 2000 and 2003, and during that period, the chip required a license for foreign sales.

The fine is among the largest a company has faced for violating the Arms Control Export Act, according to

The Associated Press

.

The settlement was signed on March 28 and was first reported by

The Seattle Times

.

Boeing shares finished Friday down 25 cents at $79.57.