GE Pays $50 Million to End SEC Claims It Manipulated Earnings - Bloomberg
Aug. 4 (Bloomberg) -- General Electric Co., the world’s biggest maker of locomotives and medical imaging equipment, agreed to pay $50 million to settle U.S. regulatory claims it manipulated earnings to meet analysts’ estimates.
The company broke accounting rules four times in 2002 and 2003 to increase earnings or avoid reporting negative financial results, the Securities and Exchange Commission said in a lawsuit in federal court in Connecticut today.
“GE bent the accounting rules beyond the breaking point,” SEC Enforcement Director Robert Khuzami said in a statement. “Overly aggressive accounting can distort a company’s true financial condition and mislead investors.”
The company, based in Fairfield, Connecticut, settled without admitting or denying wrongdoing. The accord also bars GE from violating the antifraud, reporting, record-keeping and internal-controls laws, the SEC said.
The SEC’s investigation isn’t over, according to David Bergers, head of the agency’s Boston office.
“With respect to the company, the investigation is concluded,” he said in an interview today. “With respect to others the investigation is continuing.”
To contact the reporter on this story: David Scheer in New York at dscheer@bloomberg.net.
Last Updated: August 4, 2009 10:59 EDT
What else are they manipulating? Everything on CNBC is manipulated to sound good it seems. What a joke of a financial news network. Turn them off.
Tuesday, August 4, 2009
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