GE, Investors Settle GE Power Claims for $363 Million
Investors and General Electric Co. have reached a significant settlement agreement totaling close to $363 million to resolve class claims related to an operating cash shortfall. This agreement comes just weeks before the trial was set to begin, as detailed in a recent federal court filing.
The settlement agreement, which is currently awaiting preliminary approval in the US District Court for the Southern District of New York, includes a provision for class attorneys’ fees of up to 25% of the total settlement amount, according to the filing.
Investors had alleged that General Electric Co. failed to disclose risky accounting practices related to its GE Power unit. This unit engages in long-term contracts to maintain and service gas-powered turbines for customers. The undisclosed information allegedly led to a drop in the company’s stock value.
This settlement marks an important step in resolving the legal dispute between General Electric Co. and its investors. Stay tuned for further updates as the process unfolds.
