Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against General Electric Company

Oklahoma City, OK (November 8, 2017) – On November 1, 2017, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against General Electric Company (NYSE: GE). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is July 21, 2017 through October 20, 2017. More specifically, this litigation was filed because Defendants failed to disclose: (1) that the Company’s various operating segments, including its Power segment, were underperforming Company projections, with order drops, excess inventories and increased costs; (2) as a result the Company overstated GE’s full year 2017 guidance; and, (3) that, as a result of the foregoing, Defendants’ statements about General Electric’s business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.

On October 20, 2017, the Company disclosed quarterly results for the third quarter 2017, disclosing earnings per share (“EPS”) of $0.29, falling below earnings estimates of $0.49 per share. The Company also lowered 2017 earnings expectations, lowering EPS to $1.05-$1.10 from $1.60-$1.70.

On that same day, October 20, 2017, the Company held a conference call to discuss its financial results. On the call, GE CEO John Flannery stated that the Company had been completing a review of its operations and that, “While the company has many areas of strength, it’s also clear from our current results that we need to make some major changes with urgency and a depth of purpose. Our results are unacceptable, to say the least.”

On this news, the Company’s stock price fell nearly 7% or $1.51 per share, over two trading sessions, to close at $22.32 on October 23, 2017.

Plaintiff seeks to recover damages on behalf of all General Electric Company shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Tuesday, January 2, 2018 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.

To join this class action, click here to obtain an investor certification. Once complete, please email this form to rkh@federmanlaw.com, fax to us at (405) 239-2112 or send by regular mail to Federman & Sherwood, 10205 North Pennsylvania Avenue, Oklahoma City, OK 73120, ATTN: Robin.