According to the law firm press release, 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's CEO 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, thereby injuring investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, 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 December 5, 2017, the Court issued an Order consolidating cases. The Court issued another Order consolidating cases on December 21.