April 30 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
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
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.