Labaton Sucharow Announces Expanded Securities Class Action Against General Electric
NEW YORK (December 18, 2017) – Labaton Sucharow LLP announced it has filed a securities class action lawsuit on behalf of Tampa Maritime Association-International Longshoremen’s Association Pension Plan (TMA-ILA) against General Electric Company (GE), and certain of its senior executives (collectively, the defendants). The action, Tampa Maritime Association-International Longshoremen’s Association Pension Plan v. General Electric Company, No.17-cv-09888 (S.D.N.Y.), 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 of 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 expands the class period asserted in the related consolidated action against GE, Hachem v. General Electric Company, No.17-cv-08457 (S.D.N.Y.) (Hachem), which is presently pending before the Honorable Jesse M. Furman. Pursuant to the notice published on November 1, 2017 in connection with the filing of the first-filed Hachem action, as required by the Private Securities Litigation Reform Act of 1995, investors wishing to serve as lead plaintiff in the securities actions pending against GE are required to file a motion for appointment as lead plaintiff by January 2, 2018.
GE is a multinational conglomerate with operations that are organized across various business segments, including GE Power, GE Capital, and Oil & Gas. The complaint alleges that during the class period, GE 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 applicable accounting and insurance regulations; (3) by materially under-reserving for liabilities related to long-term care policies, GE was able to maintain cash flow for its quarterly dividend payments; and (4) as a result of the foregoing, GE materially overstated its earnings and cash flows during the class period.
On October 20, 2017, the company disclosed disappointing results in the Power segment and revealed elevated claims within GE Capital’s legacy insurance business, forcing the company to suspend the payment of approximately $3 billion of additional GE Capital dividends to GE. On this news, the company’s stock price fell nearly seven percent, to close at $22.32 per share on October 23, 2017. On November 13, 2017, GE shocked the market by slashing its annual dividend in half, as the company confirmed that GE Capital would not be paying a dividend to GE in 2018. On this news, GE’s stock price fell over seven percent, to close at $19.02 per share on November 13, 2017.
If you would like to consider serving as lead plaintiff or have questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at firstname.lastname@example.org. A copy of the complaint can be found here.