In the Matter of General Electric Company Admin. Proc. File No. 3-20165
Oct. 7, 2022
On December 9, 2020, the Commission instituted and simultaneously settled cease-and-desist proceedings (the “Order”) against General Electric Company (the “Respondent”). In the Order, the Commission found that the Respondent, a large publicly-traded company that operates a number of lines of business, failed to disclose material information to investors related to two of its key reportable segments during the period from 2015 through 2017. The Commission ordered the Respondent to pay a $200,000,000 civil money penalty to the Commission. The Commission also created a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties paid can be distributed to those harmed by the Respondent’s conduct (the “Fair Fund”). See the Commission’s Order: Release No. 33-10899
The Fair Fund includes the $200,000,000 paid by the Respondent and has been deposited in an interest-bearing account at the U.S. Department of Treasury’s Bureau of the Fiscal Service, and any interest accrued will be added to the Fair Fund.
On April 16, 2021, the Commission appointed Miller Kaplan Arase LLP as the Tax Administrator of the Fair Fund. See the Commission’s Order: Release No. 34-91606
On September 16, 2021, the Commission appointed RCB Fund Services LLC as the fund administrator of the Fair Fund and set the administrator’s bond amount. See the Commission’s Order: Release No. 34-93029.
On February 28, 2022, the Commission published a notice of the proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-94323 and the Proposed Plan.
The Proposed Plan provides that the distribution of theFair Fund shall be made to investors based on their losses due to the misconduct of the Respondent as calculated in accordance with the methodology of the Plan of Allocation in the Proposed Plan.
On May 5, 2022, the Commission issued an Order approving the Proposed Plan of Distribution and simultaneously posted the approved Plan of Distribution (the “Plan”). See the Commission’s Order: Release No. 34-94856 and the approved Plan.
For more information, please contact the Fund Administrator: