General Electric Settles $362.5 Million Lawsuit

General Electric Co. is seeking court approval for a $362.5 million settlement to resolve a long-standing securities class action lawsuit that accused the company of concealing cash flow issues related to its GE Power unit. The class action, which involves investors who purchased GE stock between February 2016 and January 2018, was brought forward by pension funds including Sweden’s Sjunde AP-Fonden and the Cleveland Bakers and Teamsters Pension Fund. While GE and former CFO Jeffrey Bornstein deny any wrongdoing, the settlement is seen as a prudent resolution given the risks associated with a trial. The proposed settlement, filed in a Manhattan federal court, will also cover legal fees, with plaintiffs' attorneys seeking up to 25% of the fund. This development comes as GE Aerospace has undergone significant restructuring, focusing on its aircraft engine business following the spin-off of its healthcare and energy sectors. Following the announcement, GE's stock experienced a boost, reflecting investor satisfaction with the resolution of these legal challenges.