GE Aerospace boosted by $2B bond, but $362.5M power fallout shadows scandal

Court: S.D. New York

Case: 1:17-cv-08457

GE Aerospace has launched a $2 billion bond offering to support its financial strategy, splitting the issue between 4.3% notes due 2030 and 4.9% notes due 2036. The deal, led by J.P. Morgan, BofA Securities, and Morgan Stanley, priced on July 22 and is expected to close July 29.

What’s Happening Now

• GE Aerospace priced $2 billion in notes on July 22, 2025
• $1B in 4.3% notes due 2030
• $1B in 4.9% notes due 2036
• Offering conducted via SEC registration
• Proceeds expected to support ongoing operations and strategic initiatives
• Underwriters include JPM, BofA, and Morgan Stanley
• Closing anticipated for July 29, 2025

GE Aerospace has reached a $362,500,000 cash settlement with GE investors over claims that the company’s Power segment underperformance led to overstated 2017 financial guidance.

Timeline Overview

• Oct 20, 2017: GE cuts cash flow guidance; GE falls 7%
• Nov 13, 2017: GE slashes dividend by 50%, shares drop 12.5%
• Jan 16, 2018: $6.2B insurance charge triggers 13% selloff
• Nov 1, 2019: Lawsuit filed over misleading financial disclosures
• Jan 2025: GE finalizes $362.5M investor settlement

Allegations Include

• Overstating 2017 earnings outlook
• Concealing material cash flow and insurance risks
• Misleading investors during the Power segment downturn

Investor Update

The settlement resolves claims for investors who purchased stock between Feb 19, 2016 and Apr 23, 2018.

You can check more information about it and file for a payout HERE.