GE Investors Sue After Insurance Liabilities Draw SEC Attention

GE faces what may be the first shareholder securities fraud suit alleging it misled shareholders about its insurance liabilities and a resulting SEC investigation.

General Electric Co. didn’t properly adjust its insurance actuarial assumptions, causing the company to maintain inadequate insurance reserves and leading to massive falls in its stock price, according to a Feb. 16 complaint filed in the U.S. District Court for the Southern District of New York. GE stock dropped 2.92 percent when GE first revealed its long-term care insurance liabilities woes in July 2017, and continued to drop in response to subsequent disclosures, the complaint said. ...