General Electric Company (NYSE:GE) Investor Securities Class Action Lawsuit 01/18/2018

If you purchased a significant amount of shares of General Electric Company (NYSE:GE) between February 26, 2013 and January 12, 2018, and / or if you purchased any NYSE:GE shares prior to February 2013 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: March 19, 2018. NYSE:GE investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
General Electric Company
Case Name: 
General Electric Company Shareholder Class Action Lawsuit 01/18/2018
Case Status: 
Lawsuit Filed
Affected Securities
NYSE: GE
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/18/2018
Class Period Begin: 
02/26/2013
Class Period End: 
01/12/2018
Court of Filing: 
U.S. District Court for the District of Connecticut
Deadline To File for Lead: 
03/19/2018
Summary: 

An investor in shares of General Electric Company (NYSE:GE) filed a lawsuit in the U.S. District Court for the District of Connecticut over alleged violations of Federal Securities Laws by General Electric Company in connection with certain allegedly false and misleading statements made between February 26, 2013 and January 12, 2018.

According to the complaint the plaintiff alleges on behalf of purchasers of General Electric Company (NYSE:GE) common shares between February 26, 2013 and January 12, 2018, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 26, 2013 and January 12, 2018, the Defendants made false and/or misleading statements and/or failed to disclose that GE was failing to allocate sufficient reserves with respect to premium deficiencies and other risks associated with GE Capital’s legacy reinsurance business, that these risks were then accruing billions of dollars in unreported impairment charges for GE, that consequently, the value of GE was overstated between February 26, 2013 and January 12, 20, and additional undisclosed impairments were necessary, and that as a result of the foregoing, GE’s public statements were materially false and misleading at all relevant times.

On July 21, 2017, GE’s then-CFO Jeffrey S. Bornstein advised investors, in advance of GE’s annual cash flow test of GE Capital’s run-off insurance business, that “[w]e recently have had adverse claims experience in a portion of our long-term care portfolio and we will assess the adequacy of our premium returns.”

On October 20, 2017, Jeffrey S. Bornstein again addressed the adequacy of premium returns in GE Capital’s insurance business, advising investors that GE “recently observed elevated claims experience for a portion of the long-term care book at GE Capital’s legacy insurance business” and “began a comprehensive review in the third quarter of premium deficiency assumptions that are used in the annual claim reserve adequacy test.”

On January 16, 2018, General Electric Company announced that "the comprehensive review and reserve testing for General Electric Company Capital's run-off insurance portfolio, North American Life & Health (NALH), will result in an after-tax GAAP charge of $6.2 billion for the fourth quarter of 2017." General Electric Company further advised investors that "GE Capital expects to make statutory reserve contributions of ~$15 billion over seven years" and will suspend its dividend to GE for the "foreseeable future."

Shares of General Electric Company (NYSE:GE) declined from $19.39 per share on January 11, 2018 to as low as $16.76 per share on January 18, 2017.