(MENAFN) Shareholders have sued General Electric Co. on Friday, claiming the conglomerate has covered mounting insurance liabilities and a US Securities and Exchange Commission probe, saying it cost shareholders billions of dollars.
The complaint filed by the Cleveland Bakers and Teamsters Pension Fund is the first proposed shareholder class action accusing GE of securities fraud since the company surprised investors with two negative announcements in January.
The lawsuit seeks damages on behalf of shareholders from Feb. 26, 2013, to Jan. 24, 2018, while market value of the company dropped about USD143 billion by the end of the class period from over USD290 billion in July 2016.
The complaint said GE knew or should have known it was not immune from that trend, and quoted from analysts covering GE who wrote that it was "hard to believe" or "hard to imagine" that the company suddenly discovered its problems.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.