SEC Issues Wells Notice to GE Regarding Revenue Recognition

General Electric Co. (GE) disclosed today that the SEC’s Division of Enforcement has issued a Wells Notice to the company after a three-year-old probe that examined how GE recognizes revenue and presents cash flow.  GE made the disclosure in a Form 8-K filed after the close of U.S. markets today, and stated in the filing that it “disagree[d] with the SEC staff with respect to this recommendation.”  

According to Bloomberg, a GE spokesman said that the company is in preliminary settlement discussions with the SEC.  In July 2007 GE stated that the SEC probe focused on the finance, aviation, health-care and energy units, and that “a few” workers at its locomotive unit were fired as a result. 

Read GE’s Form 8-K

Read the Bloomberg article