Summary
General Electric Company (GE) announced on December 9, 2020, that it has reached a settlement with the Securities and Exchange Commission (SEC) regarding a previously disclosed investigation. The settlement, which resolves the SEC investigation in its entirety, involves GE consenting to pay a civil penalty of $200 million and ceasing and desisting from violations of federal securities laws. GE neither admits nor denies the SEC's findings. The SEC's order relates to disclosures concerning GE's Power business from 2015-2017 and GE Capital's run-off insurance operations from Q3 2015 to Q1 2017. Notably, the settlement does not allege misstated prior period financial statements, nor does it require any restatements. GE maintains that it stands behind its financial reporting and has already implemented enhancements to its disclosures and internal controls related to power and insurance operations.
Key Highlights
- 1GE settles SEC investigation for a $200 million civil penalty.
- 2Settlement resolves the SEC investigation in its entirety.
- 3The SEC's findings pertain to disclosures of the Power business (2015-2017) and GE Capital's run-off insurance operations (Q3 2015 - Q1 2017).
- 4GE neither admits nor denies the SEC's findings.
- 5This settlement does not require any restatements of previously issued financial statements.
- 6GE has implemented enhancements to its disclosures and internal controls since the periods under investigation.
- 7GE agreed to cooperation obligations and one year of reporting to the SEC on compliance related to its Power business and GE Capital's run-off insurance operations.