General Electric Company Class Action Lawsuit 03/03/2009
May 30, 2012 - The Court issued an order preliminarily approving the proposed settlement and providing for notice.
April 30, 2013 - A $40,000,000 settlement is proposed in the class action lawsuit accusing General Electric Company of misleading investors about its health and exposure to risky debt during the 2008 financial crisis.
January 11, 2012 - the Court issued a Memorandum Opinion and Order granting in part and denying in part the defendants' motion to dismiss.
November 24, 2009 - The defendants filed motions to dismiss.
October 2, 2009 - The lead plaintiff filed a consolidated class action complaint.
August 19, 2009 - The judge consolidated several actions.
March 3, 2009 - On Wednesday March 3, 2009 an investor in General Electric Company (NYSE: GE) has filed a proposed securities class action lawsuit on behalf of purchasers of the common stock of General Electric Company (NYSE: GE) during the period January 23, 2009 through February 27, 2009, in United States District Court for the Southern District of New York against General Electric Company over alleged violations of Federal Securities Laws.
According to the complaint the plaintiff alleges that on January 23, 2009, GE’s Chairman and CEO, Jeffrey Immelt, stated unequivocally that General Electric Company (“GE”) would maintain its quarterly $.31 per share dividend, having sufficient cash on hand and cash flow to achieve that goal. Then on February 27, 2009, GE suddenly announced it was cutting the dividend to $.10 per share and on the first trading day after the dividend reduction announcement, GE shares fell from $8.51 per share the previous trading day to close at $7.60 per share. Since then the shares have continued to decline, currently trading at $6.30 per share, an almost 30% decrease. The plaintiff alleges that between January 23, 2009 and February 27, 2009 Jeffrey Immelt sold over 52,000 shares of GE stock at $11.10 per share and other officers of GE sold over 380,000 shares at that same price. The plaintiff accues that Jeffrey Immelt then repurchased 50,000 shares after the announcement at between $7.51 and $8.30 per share and as a result, GE’s Chairman and CEO and the other officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements or knowingly or recklessly failing to know of those statements, sold GE shares at inflated prices based on those statements.