General Electric Company (NYSE: GE) agreed to pay $200 million to settle a lawsuit filed by the Securities and Exchange Commission (SEC) alleging that it misled investors through its disclosure failures.
According to the SEC, GE violated th
In a statement, SEC Division of Enforcement Director Stephanie Avakian, said, “Investors are entitled to an accurate picture of a company’s material operating results. GE’s repeated disclosure failures across multiple businesses materially misled investors about how it was generating reported earnings and cash growth as well as latent risks in its insurance business.”
On the other hand, SEC Boston Regional Office, Associate Director of Enforcement John T. Dugan, said, “Public companies must take great care to follow disclosure laws for the benefit of their investors. Companies like GE, with complexities such as interdivisional transactions and reliance on estimates of future costs and revenues, must ensure that the information they provide to investors is not misleading.”
