According to a press release dated October 4, 2008, the complaint charges GE and certain of its officers with violations of Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934. The complaint asserts that during an investor conference call on September 25, 2008, defendants falsely stated that GE would not require any additional fund raising through debt, equity, or otherwise during the fourth quarter-ended December 31, 2008.
Specifically, the complaint alleges that on October 1, 2008 GE announced that it planned to offer at least $12 billion of common stock in a public offering. On October 2, 2008, before market open, GE announced the offering was to be priced at $22.25 per share, well-below the stock's prior day closing price of $24.50 per share and below its 52 week low. News that the stock offering was priced at less than the current market price caused GE's stock price to fall over 9% on October 2, 2008.
On January 5, 2009, an Order appointing Lead Plaintiff and Lead Counsel was entered by the court.
On February 20, 2009, a first amended complaint was filed by the lead plaintiffs against the defendants.
On December 11, 2009, a second amended complaint was filed by the lead plaintiffs against the defendants.
On March 15, 2010, a third amended complaint was filed by the lead plaintiffs against the defendants in this civil action.
On September 29, 2010, the Court issued a Memorandum and Order granting the Defendants’ motion to dismiss with prejudice pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure.
On October 22, 2010, the plaintiffs filed a Notice of Appeal with the Court of Appeals in connection with the District Court's order on the motion to dismiss.
On December 12, 2011, the United States Court of Appeals for the Second Circuit found the plaintiff's arguments to be without merit and affirmed the judgment of the district court.