Proposed Settlement Reached in General Electric Class Action Case Worth $362.5 Million

Proposed Settlement Reached in General Electric Class Action Case

A landmark development has emerged for investors of General Electric Company (GE). A proposed settlement of $362.5 million has been recommended in a class action lawsuit related to the company's common stock transactions. The plaintiffs, represented by Sjunde AP-Fonden and The Cleveland Bakers and Teamsters Pension Fund, filed this action concerning transactions that took place from February 29, 2016, to January 23, 2018. If approved, this settlement could provide substantial relief for shareholders who suffered financial harm during this period.

Background of the Lawsuit

The lawsuit was initiated by shareholders who believed that GE had allegedly misled them regarding the company's financial health and earnings projections, which ultimately affected the stock price. The class of affected shareholders, referred to as the “Class,” includes all individuals or entities that purchased GE common stock within the highlighted timeframe and experienced damages. Specific exclusions and details are outlined in the Stipulation and Agreement of Settlement established on November 22, 2024.

After a series of legal proceedings, the Court has arranged a Settlement Hearing scheduled for April 24, 2025. This hearing, presided over by Honorable Jesse M. Furman, will determine if the proposed settlement terms are fair for the Class members and whether to grant the requested legal fees.

Key Details of the Settlement

The proposed settlement amount of $362.5 million is intended to resolve all claims within the action. The affected Class members will be notified of their rights and how they can participate in the settlement. To receive any payment from the settlement, Class members must submit a claim form by June 20, 2025. This will ensure their eligibility to receive a share of the Settlement Fund, which stems from the alleged disparities in the company’s stock price attributed to misleading information disseminated prior to the stock’s depreciation.

Additionally, Class Counsel is seeking to recover attorneys' fees amounting to a maximum of 25% of the Settlement Fund, along with litigation expenses capped at $10 million. The Court will review these requests during the Settlement Hearing, ensuring that any awarded amounts are reasonable and justified based on the case's merits and complexity.

Important Dates and Procedures

As part of the settlement proceedings, deadlines are critical for Class members. They are required to submit their Claim Forms by the aforementioned date, and failure to comply will result in their ineligibility to partake in the settlement fund distribution. Furthermore, any objections to the settlement must also be submitted to the Court by April 3, 2025, allowing stakeholders to voice their concerns regarding the proposed settlement agreement.

The Court has noted that this class action is already certified. Accordingly, those who requested exclusion from the class during the initial phase will not have an opportunity to opt-out a second time unless they submit a formal request to be reinstated into the Class by April 3, 2025.

Conclusion

This proposed settlement marks a crucial step in providing restitution for GE shareholders impacted by the alleged misstatements during the specified timeframe. As the legal process unfolds, impacted stakeholders must be vigilant in monitoring updates regarding the settlement process and adhere to all procedural requirements to claim their rightful compensation.

To obtain more information regarding the proposed settlement and to access the Claim Form, Class members can visit the case website at www.GeneralElectricSecuritiesLitigation.com. Questions concerning the case can be directed to Class Counsel or the Claims Administrator, emphasizing the importance of adhering to the guidelines laid out in the official notices.

This case underscores the ongoing relevance of shareholder rights in the face of corporate accountability and the significant financial implications that accompany class action litigations.