GE.US
id: 1375
GE Aerospace (GE) Investor Settlement
Late claims are being considered for compensation, subject to approval.
$362,500,000
Cash SettlementS.D. New York
Court 1:17-cv-08457
Case number02/19/2016
Class period Start04/23/2018
Class period End06/20/2025
Claim deadlineGE 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 Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Financial Misrepresentation,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
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?
Do I have to sell securities to be eligible?
How long does the payout process take?
What is 11th Estate?