GE Fair Fund
Frequently Asked Questions
1. What are the details of the SEC’s settlement with General Electric Co.?
The OIP ordered GE to pay a civil money penalty in the amount of $200,000,000, and created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002 (the “GE Fair Fund”) to be used to distribute the penalty to investors harmed by the alleged misconduct in accordance with the terms of the Distribution Plan approved by the Commission on May 5, 2022.
2. Who is eligible to participate in the distribution of the Fair Fund?
3. What securities must have I purchased to be eligible to participate in the recovery?
|GE Common Stock||GE||369604103|
4. Who is not eligible to participate in the distribution of the GE Fair Fund?
- The Respondent;
- Any current or former adviser or agent of the Respondent who participated in the conduct described in the Order;
- Any current or former employee of the Respondent or any of its affiliates who has been terminated for cause or has otherwise resigned, in connection with the conduct described in the OIP;
- Any Person who served at any time from January 1, 2015 through the end of the Relevant Period as an officer or director of GE, or any subsidiary or affiliate of GE;
- Any Person who, as of the Claims Bar Date, has been the subject of criminal charges related to the conduct described in the OIP;
- Any firm, trust, corporation, officer, or other entity in which GE and any assigns, creditors, heirs, distributees, spouses, parents, dependent children or controlled entities of any of the foregoing persons or entities has or had a controlling interest;
- The Fund Administrator, its employees, and those persons assisting the Fund Administrator in its role as Fund Administrator; or
- Any purchaser or assignee of another Person’s right to obtain a recovery from the Fair Fund for value; provided, however, that this provision shall not be construed to exclude those Persons who obtained such a right by gift, inheritance or devise.
5. I was a GE employee and acquired GE through an employee benefit program. Do these shares qualify me for a payment?
The eligibility of the shares acquired through an employee benefit program will depend on the details of the program you participated in.
If you participated in the GE Retirement Savings Plan, there is nothing further that you need to do at this time. The plan administrator will file claims with the GE Fair Fund for all plan participants that are potentially eligible to recover.
If you participated in the GE Canada Stock Savings Plan, there is nothing further that you need to do at this time. The plan administrator will file claims with the GE Fair Fund for all plan participants that are potentially eligible to recover.
If you did not participate in either of the above Plans, but believe your participation in a GE employee benefit program did involve an eligible investment in GE common stock during the Relevant Period, you may submit a claim and we can determine the eligibility of the transactions after the claim has been fully reviewed.
Any participants that held shares of GE common stock directly (outside of an employee plan) must file a separate claim relating to those shares.
6. Do shares purchased by reinvesting dividends qualify for recovery?
7. What is considered my official date of purchase (or sale) of my shares?
8. I inherited (or received as a gift) shares of GE common stock. Am I eligible to file a claim?
You must include copies of broker statements or other documentation evidencing the original purchase of the GE common stock with your claim. In addition, you must provide documentation of the transfer of the shares to you, such as the broker statements for the period in which the transfer occurred. In the case of an inheritance, you should attach copies (please do not send originals) of any legal documentation showing you are the legal recipient of these shares.
If the original owner purchased the shares of GE common stock outside of the relevant period, the shares would not be eligible for recovery.
9. The Plan of Allocation includes something called the Market Loss Limitation. What does that mean?
If the amount a claimant actually lost from their transactions in GE common stock during the Relevant Period on a cash-in, cash-out basis is less than the amount of their Recognized Loss as determined in accordance with the POA, then the amount of the claim will be equal to the amount of the actual loss (or gain).
For example, if a claimant realized a market gain from their transactions in GE common stock during the Relevant Period, the claimant would not be eligible for compensation because they did not suffer a loss (even if the calculation of Recognized Loss under the POA shows a loss).
Generally, the Market Loss Limitation is intended to help direct the recoveries from the Fair Fund to compensate those investors that actually suffered out of pocket losses as a result of their transactions in GE common stock.
10. The Distribution Plan provides that the Relevant Period for purposes of eligibility is October 16, 2015 through January 16, 2018. Why does the Claim Form require me to list purchases and sales through and including April 16, 2018?
While an eligible claimant must have purchased GE common stock during the Relevant Period, the POA requires that all sales until April 16, 2018 be considered in determining eligible losses. By taking into account any sales that occurred during the 90-day period, we are able to account for the proceeds of any sales during the period. Accounting for these sales will enable us to determine the actual losses for each claimant.
This is yet another measure that is implemented to try to ensure that recoveries from the Fair Fund are directed to compensate those investors that actually suffered an out of pocket loss as a result of trading during the Relevant Period when the misinformation was in the marketplace.
If you would like more information, please see the Plan of Allocation that can be found as Exhibit A to the Distribution Plan.
The Claim Form
11. How do I apply to participate in the GE Fair Fund? How do I file a claim?
If you would like to apply to participate in the GE Fair Fund, you must submit a completed claim form that is postmarked on or before October 19, 2022. You may submit your claim form in one of the following ways:
|a.||You can file your claim using our online claims system here. You will enter all of your information directly into the online claim form, scan your supporting documentation, and upload the supporting documentation to your claim form. If you are unable to scan your supporting documentation, you can mail the supporting documentation directly to the Fund Administrator at the address provided herein. If mailing supporting documentation, you will be directed to print off a cover sheet from the website to include with your mailing. This will ensure your documentation is included with the appropriate claim.|
If you prefer to complete and mail a paper claim form, you can download and print one here. Read and complete all required fields in the claim form, attach all necessary supporting documentation and mail the completed to:
GE Fair Fund P.O. Box 6978 Syracuse, NY 13217-6978
You can ask the Fund Administrator to mail you a claim form by calling toll free (800) 511-6120, sending an email request to [email protected] or by writing to the address included above. Remember to provide your complete name and mailing address. Upon receipt, read and complete all required fields in the claim form, attach all necessary supporting documentation and mail the completed claim form to the Fund Administrator.
12. What is the deadline for submitting the claim form?
13. Do I need to submit supporting documents with my claim form?
All documentation must include adequate identifying information (i.e., your name and account number must appear on all documentation submitted). Handwritten modifications to the documentation or self-generated schedules or statements will not be accepted. Please do not send the originals of your supporting documentation; be sure to provide copies. Documentation should list the security, type of transaction, date of transaction, number of shares, and total amount of the transaction.
The types of documents that should be submitted to support your claim include:
- monthly brokerage or other investment account statements;
- trade confirmation slips; or
- a signed letter from your broker on firm letterhead verifying the information you have provided in the claim form.
If you do not submit documents with your claim form to verify your holdings and transactions in GE common stock during the Relevant Period, we will be unable to validate your claim. Notices detailing any deficiencies in your claim will be mailed at a later date and you will have an opportunity to submit additional supporting documentation at that time.
14. What if I cannot provide all the supporting documents with my claim form?
15. Will my information be kept confidential?
16. Why does the claim form ask for my phone number and email address?
17. Why does the claim form ask for my Social Security Number (“SSN”), Tax Identification Number (“EIN”) or Passport ID Number?
We recognize the importance of keeping your personal information secure, and we do everything under our control to ensure this data is protected. This personal information will only be used as necessary to administer your claim during the claim administration process.
18. I purchased shares of GE common stock, but they were held in my broker’s name. Who should complete the claim form?
19. I held shares of GE common stock in more than one account. Should I file a separate claim form for each account?
20. If I was a co-owner of GE common stock, do we both need to sign the claim form?
21. What should I do if the investor has died? How should the claim form be completed?
If no estate was opened, or if the estate is now closed, all the legal heirs of the investor should sign their names on the claim form, and add the word “Heir”. In either circumstance, you must attach copies (please do not send originals) of any legal documentation providing evidence you are the executor or Fund Administrator of the estate, or the legal heir of the deceased.
If you had a co-owner of the shares of GE common stock who has died, you should sign the claim form yourself, and send copies of documents that show:
|a.||The co-owner has died (for example, a copy of the death certificate); and|
|b.||You are legally entitled to the co-owner’s interest in the shares of GE common stock.|
After Your Claim Is Submitted
22. Will I be notified whether my claim was received by the Fund Administrator?
If you submit your claim using the on-line claim filing option, you will immediately see a link where you can download a PDF copy of the claim that you submitted which contains your claim number.
If you mail a claim form directly to the Fund Administrator, you will not receive confirmation of receipt from the Fund Administrator. We would encourage you to either use the online claim filing option, or to utilize a mailing option or courier service that will provide you with proof of delivery and receipt of the claim form by the Fund Administrator. The burden to prove receipt of the claim by the Fund Administrator will be upon the potential claimant.
23. Will I be notified whether my claim is accepted, rejected or deficient?
24. How much will I be paid if I am eligible?
If you are determined to be eligible, the amount of your recovery will be based on the plan of allocation loss methodology that was approved by the Commission. The plan of allocation analyzes the reaction of the price of GE common stock to the misstatements and omissions alleged in the SEC’s OIP in order to assess the inflation of the price of GE common stock as a result of the conduct at issue.
Your eligible loss will be calculated in accordance with the plan of allocation. Please note that your eligible losses will be used to determine the amount of your distribution payment from the GE Fair Fund; however, if the aggregate losses of all claimants exceeds the value of the GE Fair Fund, the GE Fair Fund will be distributed to eligible claimants proportionately based upon the ratio of the eligible losses of each claimant to the aggregate eligible losses of all eligible claimants.
You can read a more detailed explanation of the plan of allocation and how distribution payments are calculated, including examples showing the application of the methodology, in the Distribution Plan which is available on this website.
25. Will I have to pay taxes on my payment?
26. What should I do if I move after I submit my claim form?
GE Fair Fund
P.O. Box 6978
Syracuse, NY 13217-6978
Effect of Submitting a Claim
27. Am I giving up any legal rights by filing a claim form?
28. Is this case a class action?
29. I am an institutional filer; may I file my claim electronically?
30. Will the Fund Administrator ship blank claim forms to an institutional filer in bulk so that the institutional filer can mail them directly to clients?
Getting More Information
31. I still have some questions. Who can I contact?
- Call toll-free (800) 511-6120 (Domestic) or (315) 671-5771 (International), Monday through Friday between 8:30am and 5:00pm, Eastern Standard Time;
- Send an email to us at [email protected]; or
- Write to:
GE Fair Fund
P.O. Box 6978
Syracuse, NY 13217-6978