General Electric Inc. ("GE" or the Company) is an American multinational conglomerate providing equipment, solutions and services across the energy value chain from generation to consumption.
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 and December 29, 2017, the Court issued Orders consolidating cases. On January 19, 2018, the Court issued an Order appointing Lead Plaintiff and Counsel. On February 26, the Court issued an additional Order consolidating cases.
Lead Plaintiff filed a consolidated amended Complaint on March 20, 2018. On April 10, Lead Plaintiff filed a second amended consolidated Complaint.
On April 12, 2018, the Court issued an Order vacating Lead Plaintiff and Lead Counsel, reopening the process for appointment of Lead Plaintiff and Lead Counsel. On May 30, the Court issued an Order appointing Lead Plaintiff and Counsel. On July 23, one of the Plaintiffs voluntarily dismissed his claims.
On July 25, 2018, Lead Plaintiff filed a third amended consolidated Complaint. On September 12, Defendants filed a Motion to Dismiss the third amended consolidated Complaint. On October 17, Lead Plaintiff filed a fourth amended consolidated Complaint. Defendants filed a Motion to Dismiss the amended consolidated Complaint on September 12. On August 29, 2019, the Court issued an Order partially granting Defendants' Motion to Dismiss. The parties were ordered to meet and submit a joint letter concerning the next steps in the litigation.
Lead Plaintiff filed a fifth amended consolidated Complaint on October 25, 2019. Defendants filed a Motion to Dismiss the fifth amended Complaint on December 18. On January 29, 2021, the Court issued an Order granting in part and denying in part Defendants' Motion to Dismiss.
Lead Plaintiff filed a Motion for Class Certification on May 21, 2021. On April 11, 2022, the Court issued an Order granting the Motion for Class Certification.
Lead Plaintiff filed a sixth amended consolidated Complaint on May 13, 2022. Defendants filed a Motion for Summary Judgment on September 6. On September 28, 2023, the Court issued an Order granting in part and denying in part Defendants' Summary Judgment Motion.