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About POGO's Federal Contractor Misconduct Database (FCMD)

The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »

General Electric

2008 Shareholder Lawsuit

Date: 10/03/2008 (Date of Filing)

Misconduct Type: Securities

Enforcement Agency: Non-Governmental

Contracting Party: None

Court Type: Civil

Amount: $0

Disposition: Pending

Synopsis: A class-action lawsuit was filed on behalf of all purchasers of General Electric common stock and call option during the period beginning September 25, 2008 through and including October 1, 2008. The complaint charges GE and certain of its officers with violating Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934. The complaint alleges that during an investor conference call on September 25, 2008, defendants falsely stated that GE would not require any additional fund raising through debt, equity, or otherwise during the fourth quarter ending December 31, 2008. According to the complaint, GE offered common stock on October 2, 2008, at a price well-below the stock's prior day closing price and below its 52 week low. News that the stock offering was priced at less than the current market price caused GE's stock price to fall over 9 percent.