NEW YORK, March 11, 2019 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in General Electric Company ("GE" or the "Company") (GE) of the April 2, 2019 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in GE stock or options between December 27, 2017 and October 29, 2018 and would like to discuss your legal rights, click here: www.faruqilaw.com/GE. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
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Attn: Richard Gonnello, Esq.
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The lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all those who purchased General Electric common stock between December 27, 2017 and October 29, 2018 (the "Class Period"). The case, Sheet Metal Workers Local 17 Trust Funds v. General Electric Company et al., No. 19-cv-01244 was filed on February 8, 2019, and has been assigned to Judge Denis L. Cote.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the design and technology of GE Power's flagship gas turbines were structurally flawed as they were plagued with an oxidation problem that caused the blades in the H-Class gas turbines to fail; (2) GE Power's goodwill was materially overstated, in large part because of such structural issues; (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, Defendant's public statements were materially false and/or misleading and/or lacked a reasonable basis.
Specifically, on September 19, 2018, Richard Stokes, who was President and Chief Executive Officer of the GE Power portfolio at the time, published an article on LinkedIn disclosing that the Company had identified an issue they expected to impact their High Efficiency, Air Cooled ("HA") units and which involved an oxidation issue that affected the lifespan of a single blade component. The post prompted concerned comments on various media outlets and by certain analysts, including Reuters and JP Morgan.
On this news, the Company's stock price fell from $12.86 per share on September 19, 2018 to $11.27 per share on September 25, 2018—a $1.59 or 12.34% drop.
Then, on October 30, 2018, GE released a quarterly report which confirmed a massive goodwill impairment charge of $22 billion related to GE Power, disclosed that regulatory investigations related to the Company's accounting had expanded to include the goodwill impairment writedown, including a DOJ criminal investigation, slashed its dividend to 1 cent, and announced intentions to reorganize its Power business.
On this news, the Company's stock price fell from $11.16 per share on October 29, 2018 to $10.18 per share on October 30, 2018—a $0.98 or 8.78% drop.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding General Electric's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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