$GE: Investor Confidence Tested — $362.5M Power Segment Settlement Still Lingers

Court: S.D. New York

Case: 1:17-cv-08457

General Electric GE is back in the spotlight as it works to rebuild confidence, with GE Aerospace pushing forward in defense and aviation. Yet, the $362.5 million settlement tied to past financial missteps in its Power segment remains a reminder of governance and transparency issues that continue to weigh on GE.

• GE Aerospace advancing with fighter jet engine talks in India.
• Broader turnaround efforts highlight aviation and defense strength.
• Power segment legacy issues led to investor lawsuits.
• GE stock had fallen over 30% between Oct 2017–Jan 2018 during disclosures.
• Settlement marks closure but leaves reputational scars.

Timeline Overview

• Oct 20, 2017: GE cut cash flow guidance; GE fell 7%.
• Nov 13, 2017: Dividend slashed 50%; stock dropped 12.5%.
• Jan 16, 2018: $6.2B insurance charge revealed; GE plunged 13%.
• Nov 1, 2019: Investors filed lawsuit over misleading guidance.
• Jan 2025: GE reached a $362.5 million cash settlement.

Allegations Include

• Overstating 2017 earnings guidance.
• Concealing Power segment’s financial risks.
• Misleading investors on cash flow sustainability.
• Downplaying exposure to long-term insurance liabilities.

Investor Update

GE has agreed to a $362.5 million settlement to resolve investor claims tied to its Power unit misstatements. While GE Aerospace’s defense and aviation growth is promising, the settlement underscores lingering trust challenges for shareholders.

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