GE: Aerospace Outlook Strong — But $362.5M Power Segment Settlement Still Shadows the Stock
Court: S.D. New York
Case: 1:17-cv-08457
GE Aerospace 
GE continues to dominate the jet engine industry with rising demand, high-margin servicing contracts, and leadership under Larry Culp. Yet even as the standalone aviation giant scales new heights, a major $362.5 million settlement tied to GE’s troubled Power division in 2017 continues to weigh on investor sentiment — with fresh volatility in Russell 1000 trading reflecting ongoing industry caution.
Key Developments
- GE Aerospace commands over 70,000 installed engines globally
- 75% of commercial flights powered by GE technology
- Servicing drives 70% of revenue and outpaces engine sales
- Strong demand for LEAP engine amid emissions regulations
- Five-year engine order backlog provides visibility
- Leadership under Larry Culp credited with operational discipline
- Recent share volatility despite solid earnings and analyst upgrades
Timeline Overview
- October 20, 2017: GE cuts cash flow guidance; GE falls 7%
- November 13, 2017: Announces 50% dividend cut; GE drops 12.5%
- January 16, 2018: Discloses $6.2B charge for long-term care insurance; GE declines another 13%
- November 1, 2019: Investors file lawsuit over misleading financial disclosures
- January 2025: GE finalizes $362.5 million settlement with investors
Allegations Include
- Overstating 2017 guidance despite internal risks
- Concealing cash flow and insurance-related liabilities
- Failure to disclose accounting treatment of long-term care insurance
- Misleading public disclosures about GE’s financial condition
Investor Update
GE agreed to a $362.5 million cash settlement to resolve claims it misled investors regarding its Power segment’s true financial condition during 2017. This marks another chapter in GE’s efforts to unwind legacy liabilities even as GE Aerospace emerges as the flagship growth engine.
You can check more information about it and file for a payout HERE.