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GE.US
id: 1375

GE Aerospace (GE) Investor Settlement

$362,500,000
Cash Settlement
S.D. New York
Court
1:17-cv-08457
Case number
02/19/2016
Class period Start
04/23/2018
Class period End
06/20/2025
Claim deadline
GE Aerospace reached a settlement with $GE investors over claims that its Power segment's poor performance resulted in an overestimation of its 2017 guidance.
Overview
In late 2017, General Electric faced scrutiny over cash flow problems and undisclosed financial risks. Between October 2017 and January 2018, the company revealed lower cash flow guidance, a dividend cut, and a $6.2 billion insurance charge, causing $GE to drop 31.8%. Following this, General Electric faced a lawsuit from investors.
Timeline

  • October 20, 2017 – General Electric cut its cash flow guidance, and $GE dropped 7%.

  • November 13, 2017 – GE announced a 50% dividend cut, causing $GE to fall 12.5%.

  • January 16, 2018 – GE disclosed a $6.2 billion charge for insurance reserves, which led to a 13% drop in $GE.

  • November 1, 2019 – Investors filed a lawsuit, alleging GE misled them about its financial condition.

  • January 2025 – GE finalized a settlement to resolve investor claims.

Background
General Electric began facing severe financial issues in late 2017. On October 20, 2017, the company lowered its cash flow guidance, causing a 7% decline in $GE over two days.
The situation worsened on November 13, 2017, when GE announced a 50% dividend cut, leading to a 12.5% stock drop.
On January 16, 2018, GE revealed a $6.2 billion loss tied to its long-term care insurance business and said it would need to set aside another $15 billion over the next seven years.
This news triggered another 13% decline in $GE.
On November 1, 2019, investors filed a lawsuit, alleging GE misled them about its financial condition.
What Can Investors Expect Now?
GE Aerospace has reached an agreement with $GE investors over claims that its Power segment's poor performance resulted in an overestimation of its 2017 guidance.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Type
US Securities Class Action
Case Status
Distribution Preparation
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Failure to Disclose
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.05
Filing date
11/01/2017
Plaintiffs
Sjunde-AP Fonden
Attorneys
Kessler Topaz Meltzer & Check LLP; Grant & Eisenhofer
Defendants
JEFFREY R. IMMELT; JEFFREY S. BORNSTEIN; JAMIE MILLER; KEITH S. SHERIN; JAN R. HAUSER; RICHARD A. LAXER
Judge
Jesse M. Furman
Administrator
JND Legal Administration
Settlement agreement date
2024-11-25
Court hearing date
04/24/2025
Exclusion deadline
04/03/2025
Objection deadline
04/03/2025
Attorney fee
$123,125,000
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons who purchased or otherwise acquired GE’s publicly traded common stock during the period February 29, 2016, through January 23, 2018.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11th Estate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

1. Prepare documents for your payout

2. Audit the claim and make sure you get the maximum possible payout

3. File a claim with the settlement administration

4. Correspond with the settlement administration to resolve emerging issues

5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.