GE Hid Turbine Coating Problems From Investors, Suit Says (1)

GE was hit with a would-be class action alleging it didn’t tell investors about significant problems with its Power segment’s H-Class turbines, which cost the company billions in market capitalization.

General Electric Co. should have warned investors about GE Power’s “disastrously defective” new turbines, according to the complaint filed Feb. 8 in New York federal court. Instead, the company told investors that the turbine problems were “minor, easily fixable, and in no way widespread or systemic,” the complaint said.

Problems with the turbines’ coating caused them to fail after as little as a year of use, according to the complaint. ...