GE Says It Has Received 'Wells Notice' From SEC Relating to Accounting Investigation
07 October 2020 - 6:16AM
Dow Jones News
By Theo Francis
General Electric Co. said it has received a notice from the
staff at the Securities and Exchange Commission warning that the
agency could bring a civil action against the company for allegedly
violating securities laws.
The industrial giant said in a securities filing Tuesday that it
received the so-called Wells notice on Sept. 30 over the company's
accounting for reserves related to an insurance business it started
to wind down in prior years.
A Wells notice is a letter saying the SEC plans to bring an
enforcement action and gives the recipient an opportunity to argue
why the action shouldn't be taken.
The SEC and the Justice Department have been investigating GE's
accounting for about two years after the company disclosed large
write-downs tied to a legacy insurance business and its power
business.
(More to come.)
Write to Theo Francis at theo.francis@wsj.com
(END) Dow Jones Newswires
October 06, 2020 15:01 ET (19:01 GMT)
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