GE can’t afford much these days, so it probably goes without saying that the $ 200 million check it is now forced to cut to the SEC isn’t ideal. Of course, it probably should have thought about it before adopting accounting practices – if you could be generous enough to label them as “practices” – that had more to do with the relentlessly positive ethos of its former CEO than anything out of the ordinary approached.
The company has misled investors by failing to state that a quarter of its GE Power profit in 2016 and nearly half in the first three quarters of 2017 were due to reducing its previous cost estimates, according to the SEC.
The order also notes that GE has failed to advise investors that the reported surge in current industrial fundraising would come at the expense of cash in the coming years, the SEC said.
And Larry Culp & Co. I should better consider this low cost and everyone else.
As part of the settlement, GE also agreed to report to the SEC for a period of one year on regulatory compliance with GE Capital’s power business and run-off insurance businesses.
According to the US SEC, GE pays a $ 200 million fine for misleading investors [Reuters]