General Electric Company Former And Current Employee Investigation

If you are a former or current employee or are a member of any of General Electric Company (NYSE: GE) investment plans or profit sharing retirement plans and purchased or held General Electric stock (NYSE: GE) in one of those plans during the periods January 23, 2009 to February 27, 2009.or have information relating to this investigation, you should contact the Shareholders Foundation, Inc. immediately!

To have your information reviewed for options and to recieve notifications about this investigation, 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
Affected Securities: 
NYSE: GE

According to a press release there is currently an ongoing investigation on behalf of former and current employees of General Electric Company (NYSE: GE) concerning potential Employee Retirement Income Security Act (“ERISA”) Breach of Fiduciary Duty.

General Electric Company (NYSE: GE) has been accused of securities fraud and according to a press release under ERISA employees (former and current) of General Electric Company (NYSE: GE) may be eligible to file a ERISA complaint for putting stock options at risk if they can prove their employer violated its fiduciary duty to them. The Fiduciary duty refers to a company’s responsibility to the people who invest in it and if an employer puts the company’s interest ahead of the investors’, it has broken its fiduciary duty., so the investigation. ERISA, so the press release, is a federal law that sets minimum standards for pension and health plans set up by private businesses and ERISA was designed to protect people who participate in employee benefit plans, including employees with stock options in a company.

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.