NEW YORK, Dec. 18, 2017 (GLOBE NEWSWIRE) — Labaton Sucharow LLP (“Labaton Sucharow”) announces that on December 18, 2017, it filed a securities class action lawsuit on behalf of its client Tampa Maritime Association-International Longshoremen’s Association Pension Plan (“TMA-ILA”) against General Electric Company (“General Electric” or the “Company”) (NYSE:GE), and certain of its senior executives (collectively, “Defendants”). The action, which is captioned Tampa Maritime Association-International Longshoremen’s Association Pension Plan v. General Electric Company, No. 1:17-cv-09888 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired the publicly traded securities of General Electric between December 15, 2016 and November 10, 2017, inclusive (the “Class Period”).
The Complaint expands the class period asserted in the related consolidated action against General Electric, captioned Hachem v. General Electric Company, No. 1:17-cv-08457-JMF (S.D.N.Y.) (“Hachem”), which is presently pending before the Honorable Jesse M. Furman. Pursuant to the notice published on November 1, 2017 in connection with the filing of the first-filed Hachem action, as required by the Private Securities Litigation Reform Act of 1995, investors wishing to serve as Lead Plaintiff in the securities actions pending against General Electric are required to file a motion for appointment as Lead Plaintiff by no later than January 2, 2018.
General Electric is a multi-national conglomerate with operations that are organized across various business segments, including GE Power, GE Capital, and Oil & Gas. The Complaint alleges that during the Class Period, General Electric failed to disclose that: (1) the Company’s various operating segments, including the Power and Oil & Gas segments, were underperforming Company projections, with order drops, excess inventories and increased costs; (2) GE Capital’s long-term care reserves were understated by billions of dollars in violation of applicable accounting and insurance regulations; (3) by materially under-reserving for liabilities related to long-term care policies, General Electric was able to maintain cash flow for its quarterly dividend payments; and (4) as a result of the foregoing, General Electric materially overstated its earnings and cash flows during the Class Period.
On October 20, 2017, the Company disclosed disappointing results in the Power segment and revealed elevated claims within GE Capital’s legacy insurance business, forcing the Company to suspend the payment of approximately $3 billion of additional GE Capital dividends to General Electric. On this news, the Company’s stock price fell $1.51 per share, or nearly 7 percent, to close at $22.32 per share on October 23, 2017. Thereafter, on November 13, 2017, General Electric shocked the market by slashing its annual dividend in half, from $0.96 to $0.48 per share, as the Company confirmed that GE Capital would not be paying a dividend to General Electric in 2018. On this news, General Electric’s stock price fell $1.47 per share, or over 7 percent, to close at $19.02 per share on November 13, 2017.
If you purchased or acquired General Electric securities during the Class Period, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Southern District of New York no later than January 2, 2018. The Lead Plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at [email protected]. You can view a copy of the complaint online at http://www.labaton.com/en/cases/Tampa-Maritime-Association-International-Longshoremens-Association-Pension-Plan-v-General-Electric.cfm.
TMA-ILA is represented by Labaton Sucharow, which represents many of the largest pension funds in the United States and internationally with combined assets under management of more than $2 trillion. Labaton Sucharow’s litigation reputation is built on its half-century of securities litigation experience, more than 60 full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, Washington, D.C., and Chicago, IL. More information about Labaton Sucharow is available at www.labaton.com.
Source: Labaton Sucharow LLP