GE Finally Settled With Investors Over 2017 Financial Woes – Here's How to Get Payout

Court: S.D. New York

Case: 1:17-cv-08457

GE Aerospace has agreed to settle with investors who say the company misled them about the financial health of its Power segment, leading to overly optimistic 2017 guidance. The settlement, finalized in January 2025, follows a series of damaging disclosures that caused GE to drop by 31%.

What Really Happened With GE’s 2017 Guidance

In late 2017, General Electric slashed its cash flow outlook, causing its stock to drop 7% over the next two days. Less than a month later, GE cut its dividend in half, triggering a further 12.5% drop.

But the most severe blow came in January 2018, when GE disclosed a massive $6.2B charge related to its long-term care insurance business. It also announced plans to reserve an additional $15B over the next seven years. When this news came out, the stock fell another 13%.

Investors Push Back—and Get Results

The sudden wave of bad news raised serious concerns about GE’s transparency. Investors argued that the company’s leadership hid information about the true state of its Power division and overall financial stability. By November 2019, a group of investors filed suit, alleging that GE had concealed material financial risks and overstated its ability to deliver on its 2017 guidance.

The Deal That Finally Closed the Chapter

Now, after more than five years of legal battles, GE has agreed to settle the case. The deal, finalized in January 2025, offers some measure of compensation for investors who suffered significant losses. And even though the deadline has passed, late claims are being accepted. You can check the latest details and file yours here.