Hachem v. General Electric Company
Status: Ongoing Case
On January 19, 2018 Labaton Sucharow was appointed lead counsel in this securities class action on behalf of the lead plaintiff Arkansas Teacher Retirement System against General Electric Company (GE), and certain of its senior executives (collectively, the defendants). The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the Exchange Act), and U.S. Securities and Exchange Commission (SEC) Rule 10b-5 promulgated thereunder, on behalf all persons or entities who purchased or otherwise acquired the publicly traded securities of General Electric between December 15, 2016 and November 10, 2017, inclusive (the class period).
The complaint alleges that, during the class period, General Electric failed to disclose that: (1) the company’s various operating segments, including the Power and Oil & Gas segments, were underperforming company projections with order drops, excess inventories and increased costs; (2) GE Capital’s long-term care reserves were understated by billions of dollars in violation of GAAP; (3) by materially under-reserving for liabilities related to GE Capital’s legacy long-term care reinsurance policies, General Electric was able to maintain cash flow for its quarterly dividend payments; and (4) as a result of the foregoing, General Electric materially overstated its earnings and cash flows during the class period.
Labaton Sucharow previously filed an action on behalf of Tampa Maritime Association-International Longshoremen’s Association Pension Plan against GE (captioned as Tampa Maritime Association-International Longshoremen’s Association Pension Plan v. General Electric Company, No. 17-cv-9888 (S.D.N.Y.)), which was consolidated with this matter.
The case is Hachem v. General Electric Company, No. 17-cv-8457 (S.D.N.Y.). The lead plaintiff is Arkansas Teacher Retirement System. The defendant is General Electric Company.