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General Electric (GE +0.1%) will pay $40M to settle a lawsuit stemming from a 77% decline in the...

General Electric (GE +0.1%) will pay $40M to settle a lawsuit stemming from a 77% decline in the value of the company's shares over a six-month period during the financial crisis. State Universities Retirement System of Illinois claimed the company hid bad debt tied to subprime loans, an accusation GE believes is "without merit." Nonetheless, the company says it is "in the best interests of shareholders [to] avoid diverting significant resources to" the lawsuit.
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Comments (9)
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
     
    That's o.k. Immelt has friends in high places. Just like Corzine.
    30 Apr 2013, 11:18 AM Reply Like
  • jeffk56
    , contributor
    Comments (11) | Send Message
     
    So who gets the money other than lawyers?
    30 Apr 2013, 12:00 PM Reply Like
  • jakesphere
    , contributor
    Comment (1) | Send Message
     
    What about the small individual stockholder who lost the same amount? (and is STILL waiting to AT LEAST break even!!)
    30 Apr 2013, 12:36 PM Reply Like
  • Ed Carlton
    , contributor
    Comments (2) | Send Message
     
    It is my belief that lenders as well as purchasers (FMNA, FHLMC) of mortgages were required to make a certain percentage of their loans in the sub-prime category. Wasn't that an old Chris Dodd/Barney Frank enginered regulation?
    30 Apr 2013, 12:43 PM Reply Like
  • erjcerjc
    , contributor
    Comments (36) | Send Message
     
    How about reembursing the rest of we stock holders?
    Isn't it in "the best interests" of the Company to keep all of its stock holders happy?
    30 Apr 2013, 12:43 PM Reply Like
  • duke70
    , contributor
    Comment (1) | Send Message
     
    Another waste by GE but not as bad as the waste of money they pay that hack Immelt and his cronies on the board of directors-They had a chance to do great things years ago and they failed !!
    30 Apr 2013, 12:48 PM Reply Like
  • zbignue
    , contributor
    Comments (363) | Send Message
     
    If the suit were brought against a government agency, instead of a for profit organization, they'd spend billions (of our dollars) to defend against a millions dollar lawsuit. When it makes sense to pay off rather than fight, private firms have the advantage
    30 Apr 2013, 12:52 PM Reply Like
  • grmpienva
    , contributor
    Comments (12) | Send Message
     
    Given the chance, GE will never,never go to court if it can settle.
    30 Apr 2013, 01:21 PM Reply Like
  • j1stoner
    , contributor
    Comments (27) | Send Message
     
    The referenced article on Reuters indicates that it was a class-action suit on behalf of "shareholders who held GE common stock between September 25, 2008 and March 19, 2009." With the current issuance of 10.4 Billion shares, assuming half the shares are eligible (the rest being disqualified for one reason or another) and that lawyers get 1/3 of the $40 MM, that means that those shareholders would get about 1/2 of a cent per share. Outstanding! (that's sarcasm...)
    30 Apr 2013, 03:50 PM Reply Like
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