What are some significant allegations against General Electric (GE)?
Being such a large company, General Electric has been involved in numerous lawsuits over the years. Most recently, it has become embroiled in a shareholder lawsuit regarding its pension plan and disbursements to members and shareholders of the company. The major allegation in this suit is that the company has, at some time, illegally adjusted the insurance calculations so that it doesn’t have to pay out as much money for the pension plan.
A pension is a fixed benefit retirement plan that pays out a specific, fixed sum of money monthly until someone dies, based on a calculation from insurance brokers. It is believed, in this case, that General Electric manipulated the equation without telling those who would be receiving funds in order to bolster their financial statements, which is a form of shareholder fraud.
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