GE settles shareholder lawsuit for $40 mln
April 30 (Reuters) - General Electric Co agreed to pay $40 million to settle a shareholder lawsuit accusing the company of misleading investors about its health during the 2008 financial crisis.
Shareholders accused GE of inflating the value of assets at its GE Capital unit, overstating the quality of its holdings in subprime and other risky loans, and maintaining inadequate reserves.
They said this threatened GE's ability to maintain its top credit rating and its quarterly dividend, and caused its stock price to fall once the risks became known.
The settlement requires court approval, and was disclosed in a Monday night filing in Manhattan federal court.
- Housing, jobs data weaken, but overall economic picture still upbeat
- Target holiday cyber breach hits 40 million payment cards |
- UPDATE 3-Saab wins Brazil jet deal after NSA spying sours Boeing bid
- Zuckerberg to sell Facebook shares worth about $2.3 billion |
- Special Report: Why Ukraine spurned the EU and embraced Russia