General Electric Co.
Case Caption: In re Sjunde AP-Fonden. v. Gen. Elec. Co.
Case Number: 1:17-cv-08457-JMF
Court: Southern District of New York
Judge: Honorable Jesse M. Furman
Plaintiffs: Sjunde AP-Fonden and The Cleveland Bakers and Teamsters Pension Fund
Defendants: General Electric Company and Jeffrey S. Bornstein
On April 24, 2025, the Honorable Jesse M. Furman of the Southern District of New York, approved a $362.5 million settlement in a long-running securities fraud class action case against General Electric (“GE”) and its former Chief Financial Officer, Jeffrey S. Bornstein (together, “Defendants”). Led by Class Representative Swedish pension fund, Sjunde AP-Fonden (“AP7”), along with the Cleveland Teamsters and Bakers Pension Fund, the case arose out of alleged misrepresentations made by Defendants regarding the use of factoring to conceal cash flow problems that existed within GE Power over a three-year period.
To our knowledge, this is the first securities fraud class action premised on violations of Item 303 to survive summary judgment. By way of background, in 2021, the Court sustained Plaintiffs’ claims based on allegations that GE failed to disclose material facts relating its practice of and reliance on factoring, in violation of Item 303, and affirmatively misled investors about the purpose of GE’s factoring practices. Following the completion of extensive fact and expert discovery and the certification of the Class, the Court entered an order denying Defendants’ motion for summary judgment, sending Plaintiffs’ claims to trial.
On the eve of a trial set to begin in November 2024, the parties agreed to resolve the matter.
The Court granted preliminary approval of the Settlement by Order dated January 14, 2025 and scheduled a Settlement Hearing for April 24, 2026. The Court held the Settlement Hearing on April 24, 2025 and granted final approval of the Settlement by Order dated April 24, 2025.
The deadline to file a claim to be eligible for a distribution from the Settlement was June 20, 2025. To learn more about the Settlement or how to submit a claim, please visit the Settlement website at www.GeneralElectricSecuritiesLitigation.com. Questions should be directed to the claims administrator, JND Legal Administration, by calling 1-844-202-9485; or by emailing [email protected].