GE Agrees to Pay $40MM to Settle Investor Suit
Bloomberg reported that GE agreed to pay $40 million to settle shareholder claims that the company, its CEO, Jeffrey Immelt, and, CFO, Keith Sherin, misled them about the quality of GE Capital’s loan portfolio beginning in September 2008.
According to court documents, the complaint alleged that the value of GE Capital’s assets were inflated, that the quality of GE’s holdings in subprime and non-investment grade loans was overstated, that GE Capital maintained insufficient reserves, and the company’s financial position threatened its ability to maintain its AAA rating and pay its quarterly dividend. The lead plaintiff in the case was the State Universities Retirement System of Illinois.
To read the Bloomberg story click here.