The Securities and Exchange Commission announced Wednesday that General Electric Co.
GE,
has agreed to pay a $200 million penalty to settle charges for misleading investors regarding the profitability and risks to some of its core business lines, the agency said.
The order found that the company misled investors in 2016 and 2017 about the source of profitability in its GE Power business and failed to inform investors of risks relating to its financial services business, GE Capital, between 2015 and 2017.
“Investors are entitled to an accurate picture of a company’s material operating results,” said Stephanie Avakian, Director of the Division of Enforcement in a statement. “GE’s repeated disclosure failures across multiple businesses materially misled investors about how it was generating reported earnings and cash growth as well as latent risks in its insurance business.”
The company agreed to settle the charges without admitting or denying the order’s findings. GE’s stock was down 1.4% in after-hours trade.
