General Electric Company (NYSE: GE) Investor Securities Class Action Lawsuit 03/03/2009

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Company Name(s): 
General Electric Company
Case Name: 
General Electric Company Shareholder Class Action Lawsuit 03/03/2009
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NYSE: GE
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/03/2009
Class Period Begin: 
09/25/2008
Class Period End: 
03/19/2009
Court of Filing: 
U. S. District Court for the Southern District of New York
Deadline To File for Lead: 
05/01/2009
Date Settled: 
05/30/2013
Settlement Amount: 
$40,000,000
Deadline to Participate in Settlement: 
10/11/2013
Summary: 

August 19, 2014 - The court ordered the authorization of the distribution of the net settlement fund.

March 11, 2014 - The Court of Appeals issued a mandate granting the withdrawal of the appeal.

October 1, 2013 - An objector filed a notice of appeal.

September 6, 2013 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

May 30, 2013 - The court preliminarily approved the settlement.

April 29, 2013 - Parties filed a stipulation of settlement.

January 12, 2012 - The court in part denied and in part granted the defendants’ motion to dismiss.

June 30, 2010 - Defendants filed another motion to dismiss.

June 9, 2010 - The lead plaintiff filed a second amended consolidated complaint.

November 24, 2009 - Defendants filed a motion to dismiss.

October 2, 2009 - The lead plaintiff filed an amended consolidated complaint.

August 19, 2009 - All cases were consolidated.

July 29, 2009 - Lead plaintiff and lead counsel were appointed.

May 5, 2009 - Lead plaintiff motions were filed.

March 6, 2009 - Another investor filed a complaint.

March 3, 2009 - An investor in shares of General Electric Company (NYSE: GE) filed a lawsuit in the U.S. District Court for the Southern District of New York against General Electric Company over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between January 23, 2009 and February 27, 2009.

According to the complaint the plaintiff alleges that on January 23, 2009, General Electric Company’s Chairman and CEO, Jeffrey Immelt, stated unequivocally that General Electric Company 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, General Electric Company suddenly announced it was cutting the dividend to $.10 per share and on the first trading day after the dividend reduction announcement, General Electric Company 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 General Electric Company stock at $11.10 per share and other officers of General Electric Company 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, General Electric Company’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 General Electric Company shares at inflated prices based on those statements