GE Aerospace (GE) Investor Settlement

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.