(RTTNews) – General Electric (GE) disclosed in a regulatory filing on Tuesday that it received a “Wells notice” from the U.S. Securities and Exchange Commission staff, saying that it is considering recommending a civil action against the company for possible violations of the securities laws.
GE has been informed that the issues the SEC staff may recommend that the SEC pursue relate to the historical premium deficiency testing for GE Capital’s run-off insurance operations, as well as GE’s disclosures relating to such run-off insurance operations.
The staff has not made a preliminary decision whether to recommend any action with respect to the other matters under investigation, the GE said in the regulatory filing.
GE noted that the Wells notice is neither a formal allegation nor a finding of wrongdoing.
The Wells notice allows GE the opportunity to provide its perspective and to address the issues raised by the SEC staff before any decision is made by the SEC on whether to authorize the commencement of an enforcement proceeding.
GE said it disagrees with the SEC staff with respect to the recommendation and will provide a response through the Wells notice process. If the SEC were to authorize an action against GE, it could seek an injunction against future violations of provisions of the federal securities laws, the imposition of civil monetary penalties, and other relief within the Commission’s authority.
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