Print Edition - 2018-02-19  |  Money Digest

GE faces lawsuit over insurance shortfall

NEW YORK

Feb 19, 2018-

General Electric Co was sued on Friday by a shareholder who accused the conglomerate of concealing mounting insurance liabilities and a US Securities and Exchange Commission probe, costing shareholders tens of billions of dollars. The complaint filed by the Cleveland Bakers and Teamsters Pension Fund appears to be the first proposed shareholder class action accusing GE of securities fraud since the company surprised investors with two negative announcements last month. On Jan. 16, GE said it would take a $6.2 billion pretax charge and set aside $15 billion in reserves to help cover insurance operations held by its GE Capital unit, mainly concerning long-term care insurance policies. (REUTERS)

Published: 19-02-2018 10:09

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