A tale of two SEC enforcement actions, Part 1 – GE and Luckin Coffee
Both faced fraud allegations and the settlement dollars were almost the same. The scope of investor harm and the SEC's remedies, however, could not have been more different.
Part 1 is about the SEC’s enforcement action against GE, announced on December 9, 2020. Part 2, about Luckin Coffee, will follow.
The SEC’s enforcement action and simultaneous settlement with GE was a classic case of the regulator downplaying actual accounting fraud by focusing on a lack of disclosure, instead.
General Electric Agrees to Pay $200 Million…