District court dismisses claims against banks in GE case

Class action against GE for misleading investors still stands

America’s banks now have one less accusation to worry about. On Wednesday, a district court dismissed claims that JPMorgan Chase & Co., Goldman Sachs and 40 other defendants had assisted General Electric in deceiving its investors about the company’s financial health during a 2008 stock offering.

A January ruling denied the defendants’ motion to dismiss, but District Judge Denise Cote, who took charge of the case beginning in February, said that the court handled the case improperly.

This dismissal sets the banks free, but the investors’ class action lawsuit still stands, and it remains to be seen if courts will rule that GE was responsible for losses during a six month period when its stock fell from $26 to $10.

Read more at Reuters.

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