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Cases

General Electric Co.

In re General Electric Co. Securities Litigation, 09 Civ. 1951 (S.D.N.Y.)


The firm received final approval to settle securities claims against General Electric Company, Jeffrey R. Immelt and Keith S. Sherin in the amount of $40 million. The final settlement hearing was held on September 6, 2013. The Judgment and Order can be read by clicking the link. The deadline to submit a proof of claim form was October 11, 2013.On August 19, 2014, the Court approved the administrative determinations and directed distribution of the Net Settlement Fund to be made. The Order can be read by clicking the link.


If you have any questions about your claim form or the claims process, please contact representatives of A.B. Data at This email address is being protected from spambots. You need JavaScript enabled to view it. or call 800-391-9724.


Previous Events in the Case

 

This securities class action accuses General Electric Company ("GE" or the "Company") of violating federal securities laws by concealing substantial credit risks in its financial services unit, GE Capital. According to the lawsuit, GE failed to disclose that GE Capital held hundreds of billions of dollars in subprime and non-investment grade debt, threatening the Company's financial position, its longstanding AAA credit rating and its ability to pay its promised $0.31 per share quarterly dividend in 2009. When the Company's true financial state became known, GE's share price lost approximately 60% of its prior, inflated value.

 

A worldwide technology, service and finance company, GE generates nearly half its revenues from GE Capital, which provides commercial finance, consumer finance, leasing and real estate services.

 

The firm is acting as Lead Counsel on behalf of the State Universities Retirement System of Illinois ("SURS"), which was appointed Lead Plaintiff by the Court.

 

The plaintiffs seek claims on behalf of purchasers of GE common stock from September 25, 2008, through and including March 19, 2009, (the "Class Period") and on behalf of investors who purchased shares pursuant or traceable to the Company's $12 billion public offering of common stock commencing on October 1, 2008 (the "October Offering"), and seeks damages for violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 (the "Securities Act"), as well as Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act").

 

On June 9, 2010, Lead Plaintiff filed the Second Consolidated Class Action Complaint (the "SCC") adding further support to Lead Plaintiff's allegations by including recently revealed information from "On the Brink," a book by former U.S. Treasury Secretary Henry M. Paulson Jr. In "On the Brink," Paulson relates his experience at the epicenter of the 2008 financial crisis, including details of private conversations with GE's CEO, Jeffrey Immelt, that describe a financially desperate GE in September and October 2008 that was at odds with the false and misleading "safe and secure" image the Company held out to investors at that time.

 

Click here for a copy of the complaint.

 

In a January 12, 2012 Memorandum Order and Opinion, available by clicking here, the Hon. Richard J. Holwell denied, in substantial part, defendants' motions to dismiss the complaint. Defendants moved for partial reconsideration of the Court's order. Subsequently, the case was assigned to the Hon. Denise L. Cote after Judge Holwell resigned from the federal bench to return to private practice.