The GE Global Operations Center in Cincinnati, Ohio, US, on Thursday, Jan. 4, 2024. Photo: Jeffrey Dean/BloombergGE Agrees to $362.5M Deal to End Shareholder Claims Over Power, Insurance Risks
The deal between General Electric and investors represented by Kessler Topaz Meltzer & Check had been reached in the lead-up to a trial that would have seen the company and investors squaring off on when executives became aware of what shareholders called “an undisclosed ticking time bomb."
November 27, 2024 at 01:39 PM
2 minute read
What You Need to Know
- General Electric was sued in 2017 for allegedly covering up liabilities in its power and health insurance businesses.
- The suit was filed shortly after GE's stock value plummeted by 74% after it came to light that GE’s insurance business held billions of dollars in liabilities stemming from policies that the company was unable to sell off.
- GE agreed to pay $362.5 million to shareholders to resolve the claims.
General Electric Co. agreed to pay $362.5 million to shareholders to end more than 7-year-old claims that the company covered up liabilities in its power and health insurance businesses that cratered company stock.
The deal between GE and investors represented by Kessler Topaz Meltzer & Check had been reached in October, in the lead-up to a November trial that would have seen the company and a certified investor class squaring off on when executives became aware of what investors called “an undisclosed ticking time bomb." Details of the settlement only reached the Manhattan federal court late Monday.
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