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GE faces shareholder lawsuit over insurance shortfall, SEC probe

Posted: February 19, 2018

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General Electric Co was sued on Friday by a shareholder who accused the conglomerate of concealing mounting insurance liabilities and a U.S. Securities and Exchange Commission probe, saying it cost shareholders tens of billions of dollars.

The complaint filed by the Cleveland Bakers and Teamsters Pension Fund appears to be the first proposed shareholder class action accusing GE of securities fraud since the company surprised investors with two negative announcements last month.

news.4On Jan. 16, GE said it would take a $6.2 billion pretax charge and set aside $15 billion in reserves to help cover insurance operations held by its GE Capital unit, mainly concerning long-term-care insurance policies.

Eight days later, it said the SEC had begun probing how it handled its insurance obligations, as well as how it accounted for service agreements related to power plants, jet engines and other equipment.

Read the full story at Reuters: GE faces shareholder lawsuit over insurance shortfall, SEC probe

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