A lawsuit was filed on behalf of investors in General Electric Company (NYSE:GE) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 01/31/2018 -- An investor, who purchased NYSE:GE shares, filed a lawsuit against General Electric Company over alleged violations of Federal Securities Laws.
Investors who purchased shares of General Electric Company (NYSE:GE) should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
The plaintiff claims that between February 26, 2013 and January 12, 2018, the Defendants made false and/or misleading statements and/or failed to disclose that GE was failing to allocate sufficient reserves with respect to premium deficiencies and other risks associated with GE Capital's legacy reinsurance business, that these risks were then accruing billions of dollars in unreported impairment charges for GE, that consequently, the value of GE was overstated between February 26, 2013 and January 12, 20, and additional undisclosed impairments were necessary, and that as a result of the foregoing, GE's public statements were materially false and misleading at all relevant times.
On July 21, 2017, GE's then-CFO Jeffrey S. Bornstein advised investors, in advance of GE's annual cash flow test of GE Capital's run-off insurance business, that "[w]e recently have had adverse claims experience in a portion of our long-term care portfolio and we will assess the adequacy of our premium returns."
On October 20, 2017, Jeffrey S. Bornstein again addressed the adequacy of premium returns in GE Capital's insurance business, advising investors that GE "recently observed elevated claims experience for a portion of the long-term care book at GE Capital's legacy insurance business" and "began a comprehensive review in the third quarter of premium deficiency assumptions that are used in the annual claim reserve adequacy test."
On January 16, 2018, General Electric Company announced that "the comprehensive review and reserve testing for General Electric Company Capital's run-off insurance portfolio, North American Life & Health (NALH), will result in an after-tax GAAP charge of $6.2 billion for the fourth quarter of 2017." General Electric Company further advised investors that "GE Capital expects to make statutory reserve contributions of ~$15 billion over seven years" and will suspend its dividend to GE for the "foreseeable future."
Those who purchased shares of General Electric Company (NYSE:GE) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego
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