UNITED STATES OF AMERICA

Before the

SECURITIES AND EXCHANGE COMMISSION

ADMINISTRATIVE PROCEEDING 

File No. 3-20165

In the Matter of

General Electric Company,

Respondent.

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PROPOSED PLAN OF 

DISTRIBUTION 

I. OVERVIEW

1. The Division of Enforcement submits this Proposed Plan of Distribution (the “Plan”) 

to the United States Securities and Exchange Commission (the “Commission”) pursuant to Rule 

1101 of the Commission’s Rules on Fair Fund and Disgorgement Plans (the “Commission’s Rules”), 

17 C.F.R. § 201.1101. This Plan provides for the distribution of a Fair Fund (the “Fair Fund”), 

comprised of civil money penalties paid by General Electric Company (the “Respondent” or “GE”) 

in the above-captioned matter.1 

2. As described more specifically below, the Plan seeks to compensate investors who 

were harmed, by the Respondent’s conduct described in the Order, in connection with its failure to 

disclose material information to investors related to two of its key reportable segments during the 

period from 2015 through 2017. As calculated using the methodology detailed in the Plan of 

Allocation (attached as Exhibit A), investors will be compensated for their losses on shares of 

General Electric common stock (the “Securities”) that were purchased from October 16, 2015, and 

continuing until the market close on January 16, 2018 (the “Relevant Period”) due to the misconduct 

of the Respondent. In the view of the Commission staff and the Fund Administrator, this 

methodology constitutes a fair and reasonable allocation of the Fair Fund. 

3. The Commission has custody of the Fair Fund and shall retain control of the assets of 

the Fair Fund. The Plan is subject to approval by the Commission, and the Commission retains 

jurisdiction over its implementation.

 

1

 See Order Instituting Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933 and Section 

21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Remedial Sanctions and a Cease-andDesist Order, Securities Act Rel. No. 10899 (Dec. 9, 2020) (the “Order”).
2

II. BACKGROUND

4. On December 9, 2020, the Commission issued the Order instituting and 

simultaneously settling cease-and-desist proceedings against the Respondent. In the Order, the 

Commission found that GE, a large publicly-traded company that operates a number of lines of 

businesses, failed to disclose material information to investors related to two of its key reportable 

segments during the period from 2015 through 2017. First, GE failed to disclose to investors 

information concerning the nature of its reported profit growth in its power business and $2.5 billion 

in reported cash collections. Second, from the third quarter of 2015 through the first quarter of 2017, 

GE failed to disclose to investors worsening trends in its insurance business and the potential for 

substantial losses. GE's insurance business ultimately incurred a $9.5 billion pre-tax charge against 

GE's earnings for the fourth quarter of 2017 and required capital contributions by GE of 

approximately $15 billion over seven years to fund expected future insurance claims. The 

Commission ordered the Respondent to pay a $200,000,000 civil money penalty to the Commission. 

The Commission also created the Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act 

of 2002, so the penalty paid can be distributed to harmed investors. 

5. The Respondent has paid in full. The Fair Fund has been deposited at the United 

States Department of the Treasury’s Bureau of the Fiscal Service (“BFS”) for investment. 

III. DEFINITIONS

As used in this Plan, the following definitions will apply:

6. “Administrative Costs” shall mean any administrative costs and expenses including,

without limitation, the fees and expenses of the Tax Administrator and the Fund Administrator, tax 

obligations, bond premium expenses, and investment and banking costs. 

7. “Claim Form” means the form designed by the Fund Administrator, in consultation 

with the Commission staff, for the filing of claims in accordance with this Plan. The Claim Form 

will require, at a minimum, sufficient documentation reflecting any Preliminary Claimant’s 

purchases and dispositions of Securities during the Relevant Period such that eligibility under the 

Plan can be determined, tax identification and other related information from the Preliminary 

Claimant as determined necessary by the Fund Administrator in coordination with the Tax 

Administrator, and a certification that the Preliminary Claimant is not an Excluded Party. 

8. “Claim Status Notice” means the notice sent by the Fund Administrator within one 

hundred twenty (120) days of the Claims Bar Date to all Preliminary Claimants that submitted a 

Claim Form. The Claim Status Notice will set forth the Fund Administrator’s determination of the 

eligibility of the claim (eligible, partially or wholly deficient, or ineligible). The Claim Status Notice 

will provide to each Preliminary Claimant whose claim is deficient, in whole or in part, the reason(s) 

for the deficiency and in the event the claim is denied, the Claim Status Notice will state the 

reason(s) for such denial. The Claim Status Notice will also notify the Preliminary Claimant of the 

opportunity to cure any deficiency, request reconsideration, or dispute the determination made by the 

Fund Administrator and provide instructions regarding what is required to do so.

9. “Claims Bar Date” means the date established in accordance with this Plan by which 

a Preliminary Claimant’s Claim Form must be postmarked or submitted electronically in order to 
3

receive consideration under the Plan. The Claims Bar Date shall be one hundred twenty (120) days 

from publication of the Summary Notice. Claim Forms submitted by Preliminary Claimants 

postmarked or received after the Claims Bar Date will not be accepted unless the Fund 

Administrator is directed to do so by the Commission staff.

10. “Claims Packet” means the materials relevant to submitting a claim that will be 

provided to Preliminary Claimants those who request such materials through a website or otherwise 

prior to the Claims Bar Date. The Claims Packet will include, at a minimum, a copy of the Plan 

Notice and a Claim Form (together with instructions for completion of the Claim Form).

11. “Distribution Payment” means a payment from the Fair Fund to a Payee in 

accordance with the terms of this Plan.

12. “Eligible Claimant” means a Preliminary Claimant who submitted a valid claim, 

who may have suffered a loss from purchases of the Securities during the Relevant Period, pursuant 

to the Plan of Allocation, and who is not an Excluded Party.

13. “Excluded Party” shall mean:

(a) The Respondent;

(b) Any current or former adviser or agent of the Respondent who participated in 

the conduct described in the Order;

(c) Any current or former employee of the Respondent or any of its affiliates who 

has been terminated for cause or has otherwise resigned, in connection with 

the conduct described in the Order; 

(d) Any Person who served at any time from January 1, 2015, through the end of 

the Relevant Period as an officer2or director of the Respondent, or of any 

subsidiary or affiliate3of Respondent;

(e) Any Person who, as of the Claims Bar Date, has been the subject of criminal 

charges related to the conduct described in the Order;

(f) Any firm, trust, corporation, officer, or other entity in which Respondent and 

any assigns, creditors, heirs, distributees, spouses, parents, dependent children 

or controlled entities of any of the foregoing persons or entities has or had a 

controlling interest;

(g) The Fund Administrator, its employees, and those persons assisting the Fund 

Administrator in its role as the Fund Administrator; 

 

2 An “officer” excluded under this paragraph is any officer of GE required to file a Form 3, 4, or 5 with the Commission 

pursuant to Section 16 of the Securities Exchange Act of 1934 to report transactions in Eligible Securities during the 

2015-2018 calendar years.

3 As used herein, “affiliate shall have the meaning described in Section 101(2) of the United States Bankruptcy Code, 11 

U.S.C. § 101 et seq.
4

(h) Any purchaser or assignee of another Person’s right to obtain a recovery from 

the Fair Fund for value; provided, however, that this provision shall not be 

construed to exclude those Persons who obtained such a right by gift, 

inheritance or devise.

The Claim Form will require claimants to certify that they are not an Excluded Party.

14. “Fair Fund” means the $200,000,000 fund created by the Commission pursuant to 

Section 308(a) of the Sarbanes-Oxley Act of 2002, for the benefit of investors harmed by 

Respondent’s violations described in the Order.

15. “Final Determination Notice” shall mean the written notice sent by the Fund 

Administrator to any Preliminary Claimant who timely responded to the Claim Status Notice in an 

effort to cure a deficiency, seek reconsideration of a denied claim, or otherwise dispute the 

determination made by the Fund Administrator, notifying the Preliminary Claimant of its 

determination. The Final Determination Notice will constitute the Fund Administrator’s final ruling 

regarding the status of the claim.

16. “Net Available Fair Fund” means the Fair Fund, plus any interest or earnings, less 

Administrative Costs. 

17. “Payee” means an Eligible Claimant who is determined to receive a Distribution 

Payment, as calculated in accordance with the Plan of Allocation.

18. “Plan Notice” means a written notice from the Fund Administrator to Preliminary 

Claimants informing them of the Fair Fund; the Plan and its eligibility requirements; explaining how 

to submit a claim, including directions for any online claims process; and how to obtain a copy of 

the approved Plan and Claim Form by request or from the Fair Fund’s website. The Plan Notice will 

also be available on the Fair Fund’s website that is maintained by the Fund Administrator. 

19. “Person” means natural individuals as well as legal entities such as corporations, 

partnerships, or limited liability companies.

20. “Plan of Allocation” means the methodology by which an Eligible Claimant’s 

Recognized Loss is calculated. The Plan of Allocation is attached as Exhibit A.

21. “Preliminary Claimant” shall mean a Person, or their lawful successors, identified 

by the Fund Administrator as having a possible claim to recover from the Fair Fund pursuant to the 

Plan of Allocation or a Person asserting, prior to the Claims Bar Date, that they have a possible 

claim to recover from the Fair Fund under the Plan of Allocation. 

22. “Recognized Loss” means the amount of loss calculated for an Eligible Claimant in 

accordance with the Plan of Allocation.

23. “Relevant Period” means the period of time beginning October 16, 2015, and 

continuing until the market close on January 16, 2018. 
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24. “Securities” refers to shares of GE common stock listed on a U.S. exchange and

registered with the Commission, and traded under the symbol GE during the Relevant Period.

25. “Summary Notice” means the notice published in print or internet media that shall 

include, at a minimum, a statement of the purpose of the Fair Fund and the Plan, the means of 

obtaining a Claims Packet, and the Claims Bar Date. The Summary Notice will be published two (2) 

times and will appear within ten (10) days of the initial mailing of the Plan Notice.

26. “Third-Party Filer” means a third-party including, without limitation, a nominee, 

custodian, or an intermediary holding in street name, who is authorized to submit and submits a 

claim(s) on behalf of one or more Preliminary Claimants. Third-Party Filer does not include 

assignees or purchasers of claims, who are excluded from receiving Distribution Payments.

IV. TAX COMPLIANCE

27. On April 16, 2021, the Commission appointed Miller Kaplan Arase LLP as the tax 

administrator (the “Tax Administrator”) for the Fair Fund to handle the tax obligations of the Fair 

Fund.

4

 The Tax Administrator will be compensated for reasonable fees and expenses from the Fair 

Fund in accordance with its 2019-2021 Engagement Letter Agreement with the Commission.5

28. The Fair Fund constitutes a Qualified Settlement Fund (“QSF”) under Section 

468B(g) of the Internal Revenue Code of 1986, as amended, 26 U.S.C. § 468B(g), and related 

regulations, 26 C.F.R. §§ 1.468B-1 through 1.468B-5. The Tax Administrator is the administrator of 

such QSF, for purposes of Treas. Reg. § 1.468B-2(k)(3)(I) and shall satisfy the tax-related 

administrative requirements imposed by Treas. Reg. § 1.468B-2, including, but not limited to:

(a) Obtaining a taxpayer identification number; 

(b) Requesting funds necessary for the timely payment of all applicable taxes, the 

payment of taxes for which the Tax Administrator has received funds, and the 

filing of applicable returns; and 

(c) Fulfilling any information reporting or withholding requirements required for 

distributions from the Fair Fund.

29. All tax obligations will be paid from the Fair Fund, subject to the review and approval 

of Commission staff.

V. FUND ADMINISTRATOR

30. On September 16, 2021, the Commission appointed RCB Fund Services LLC, as the 

fund administrator for the Fair Fund (the “Fund Administrator”), and the Fund Administrator has 

obtained a bond in the amount of $200,000,000, as ordered.6 Pursuant to Rule 1105(a) of the 

 

4

 See Order Appointing Tax Administrator, Exchange Rel. No. 91606 (Apr. 16, 2021).

5

 See Omnibus Order Directing the Appointment of Tax Administrator in Administrative Proceedings that Establish 

Distribution Funds, Exchange Act Rel. No. 85174 (Feb. 22, 2019).

6

 See Order Appointing Fund Administrator and Setting Bond Amount, Exchange Act Rel. No. 93029 (Sept. 16, 2021).
6

Commission’s Rules, 17 C.F.R. § 201.1105(a), the Fund Administrator may be removed at any time 

by order of the Commission or hearing officer. 

31. The Fund Administrator will be responsible for administering the Fair Fund in 

accordance with the Plan. This will include, among other things, taking reasonable steps to identify 

and contact Preliminary Claimants; obtaining mailing information for Preliminary Claimants; 

establishing a website and staffing a call center to address inquiries during the claims process; 

developing a claims database; preparing accountings; cooperating with the tax administrator 

appointed by the Commission to satisfy any tax liabilities and to ensure compliance with income tax 

reporting requirements including, but not limited to, Foreign Account Tax Compliance Act 

(FATCA); advising Preliminary Claimants of deficiencies in claims and providing an opportunity to 

cure any documentary defects; taking antifraud measures, such as identifying false, ineligible and 

overstated claims; making determinations under the criteria established herein as to Preliminary 

Claimant eligibility; advising Preliminary Claimants of final claim determinations; disbursing the 

Fair Fund in accordance with this Plan, as ordered by the Commission; and researching and 

reconciling errors and reissuing payments, when possible.

32. To carry out the purposes of this Plan, the Fund Administrator is authorized to make 

and implement immaterial changes to the Plan upon agreement of the Commission staff. If a change 

is deemed to be material by the Commission staff, Commission approval is required prior to 

implementation by amending the Plan.

33. The Fund Administrator may extend any procedural deadline contained in the Plan 

for good cause shown, if agreed upon by the Commission staff.

34. The Fund Administrator is authorized to enter into agreements with third-parties as 

may be appropriate or necessary in the administration of the Fair Fund, provided such third-parties 

are not excluded pursuant to other provisions of this Plan. In connection with such agreements, the 

third-parties shall be deemed to be agents of the Fund Administrator under this Plan. 

35. The Fund Administrator will be entitled to payment from the Fair Fund of reasonable 

fees and expenses, including the bond premium, incurred in the performance of its duties (including 

any such fees and expenses incurred by agents, consultants or third-parties retained by the Fund 

Administrator in furtherance of its duties).

VI. ADMINISTRATION OF THE FAIR FUND

Identification of and Notification to Preliminary Claimants

36. The Fund Administrator will, insofar as practicable, use its best efforts to identify 

Preliminary Claimants from a review of trading records, obtaining records from registered brokerdealers and investment advisors, and seeking information from any other source available to them. 

The Fund Administrator may also engage a third-party firm, after consultation with and approval 

of the Commission staff, to assist in identifying Preliminary Claimants to maximize the 

participation rate of GE investors in the Fair Fund.

37. Within sixty days (60) after Commission approval of the Plan, the Fund 

Administrator shall:
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(a) Design and submit a Claims Packet, including the Plan Notice and the Claim 

Form, to the Commission staff for review and approval; 

(b) Create a mailing and claim database of all Preliminary Claimants based upon 

information identified by the Fund Administrator;

(c) Run a National Change of Address search to retrieve updated addresses for all 

records in the database, thereby ensuring the mailing information for 

Preliminary Claimants is up-to-date;

(d) Send by email or mail a Plan Notice to each Preliminary Claimant identified 

by the Fund Administrator and to the Fund Administrator’s list of banks, 

brokers, and other nominees in accordance with paragraph 42 below;

(e) Establish and maintain a website devoted solely to the Fair Fund. The Fair 

Fund’s website, located at www.gefairfund.com, will make available a copy 

of the approved Plan; provide information regarding the claims process and 

eligibility requirements for participation in the Fair Fund in the form of 

frequently asked questions; include, in downloadable form, the Plan Notice, 

Claim Form and other related materials; and such other information the Fund 

Administrator believes will be beneficial to Preliminary Claimants;

(f) Establish and maintain a toll-free telephone number for Preliminary Claimants 

to call to speak to a live representative of the Fund Administrator during its 

regular business hours or, outside of such hours, to hear prerecorded 

information about the Fair Fund. The toll-free number will be listed on all 

correspondence from the Fund Administrator to Preliminary Claimants as well 

as on the Fair Fund’s website; and

(g) Establish and maintain a traditional mailing address and an email address 

which will be listed on all correspondence from the Fund Administrator to 

Preliminary Claimants as well as on the Fair Fund’s website.

38. The Fund Administrator will publish the Summary Notice on the internet and/or in 

print media acceptable to Commission staff. The Summary Notice will be published two (2) times 

and will appear within ten (10) days of the initial mailing of the Plan Notice.

39. The Commission staff retains the right to review and approve any material posted on 

the Fair Fund’s website, any material mailed, and any scripts used in connection with any 

communication with Preliminary Claimants. 

40. In all materials that refer to the Claims Bar Date, the filing deadline will be clearly 

identified with the calendar date, which is one hundred twenty (120) days from the date of the initial 

mailing of the Plan Notice.

41. The Fund Administrator will promptly provide a Claims Packet to any Preliminary 

Claimant upon request made via mail, phone, or email prior to the Claims Bar Date.
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42. The Fund Administrator will send by mail, email, or other means, the Plan Notice to 

the Fund Administrator’s list of banks, brokers, and other nominees, as well as any other institutions 

identified during the outreach process, that may have records of the Securities during the Relevant 

Period (collectively, the “Nominees or Custodians”). The Fund Administrator will request that these 

entities, to the extent that they were record holders for beneficial owners of the Securities:

(a) Within fourteen (14) days of the Nominees’ or Custodians’ receipt of the Plan 

Notice, notify and send the Plan Notice to the respective beneficial owners,

and, as requested, provide the beneficial owners with related information so 

that the beneficial owners may timely file a claim. The burden will be on the 

Nominees or Custodians to ensure the claims process information, including, 

if requested, the Claim Packet and other relevant materials, is properly 

disseminated to the beneficial owners; and/or

(b) Provide to the Fund Administrator, within fourteen (14) days of receipt of the 

Plan Notice, a list of last known names and addresses for all beneficial owners 

for whom they purchased, as the record holder, the Securities during the 

Relevant Period, so that the Fund Administrator can communicate with the 

beneficial owners directly.

43. At the discretion of the Fund Administrator, in consultation with the Commission 

staff, a paper or PDF copy of the Claims Packet shall be made available to any Nominee or 

Custodian requesting it for the purpose of distribution to beneficial owners.

44. Documented reasonable out-of-pocket expenses incurred by the Nominees or the 

Custodians, which would not have been incurred but for compliance with paragraph 42 above, shall 

be reimbursed from the Fair Fund. The amount of such expenses allowed will be at the discretion of 

the Fund Administrator, in consultation with the Commission staff. Unless otherwise determined by 

the Fund Administrator in consultation with the Commission staff, out –of-pocket expenses based on 

the following rates will be considered reasonable:

(a) a maximum of $0.08 per Claims Packet, plus postage at the pre-sort postage 

rate per Claim Packet actually mailed;

(b) $0.05 per email of Summary Notice of Plan Notice and Claim Form link 

disseminated; or 

(c) $0.20 per name, address, and email address provided to the Fund 

Administrator, up to a maximum amount of $1,500.00.

45. The Fund Administrator will attempt to locate any Preliminary Claimant whose 

mailing is returned as “undeliverable” and will document all such efforts. The Fund Administrator 

shall use its best efforts to make use of commercially available resources and other reasonably 

appropriate means to obtain updated addresses in response to “undeliverable” notices, and forward 

any returned mail for which an updated address is provided or obtained. The Fund Administrator 

will make available, upon request by the Commission staff, a list of all Preliminary Claimants for 

whom a Plan Notice has been returned as “undeliverable” due to incorrect addresses and for which 

the Fund Administrator has been unable to locate current addresses.
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Filing a Claim

46. To avoid being barred from asserting a claim, on or before the Claims Bar Date, each 

Preliminary Claimant must submit to the Fund Administrator, electronically through the Fund 

Administrator’s web-based claim portal located at www.gefairfund.com or through other means, a 

properly completed Claim Form reflecting such Preliminary Claimant’s claim, together with all 

required supporting documentation as the Fund Administrator, in its discretion, deems necessary or 

appropriate to substantiate the claim. Without limitation, this information may include third-party 

documentary evidence of purchases and dispositions of Securities during the Relevant Period, as 

well as holdings of Securities at pertinent dates. The burden will be upon the Preliminary Claimant 

to ensure that his, her or its Claim Form has been properly and timely received by the Fund 

Administrator. A Claim Form that is postmarked or otherwise submitted after the Claims Bar Date 

will not be accepted unless the deadline is extended by the Fund Administrator for good cause 

shown, after consultation with the Commission staff. 

47. The burden to prove receipt of the claim by the Fund Administrator will be upon the 

Preliminary Claimant; therefore, the Preliminary Claimants will be instructed to submit their claims 

in a manner that will enable them to prove receipt of the claim by the Fund Administrator.

48. All Claim Forms and supporting documentation necessary to determine a Preliminary 

Claimant’s eligibility to receive a distribution from the Fair Fund under the terms of the Plan must 

be verified by a declaration executed by the Preliminary Claimant under penalty of perjury under the 

laws of the United States. The declaration must be executed by the Preliminary Claimant, unless the 

Fund Administrator accepts such declaration from a Person authorized to act on the Preliminary 

Claimant’s behalf, whose authority is supported by such documentary evidence as the Fund 

Administrator deems necessary. 

49. Electronic claims submission is strongly encouraged; the Plan Notice will include 

directions on how Preliminary Claimants can submit their claims electronically via the Fair Fund’s 

website at www.gefairfund.com. If using the web-based claim filing option, a Preliminary Claimant 

must submit their claim to the Fund Administrator by 11:59 p.m. on the Claims Bar Date. The Plan 

Notice will also include directions for submission of claims if the Preliminary Claimant is unable to 

submit their claim electronically. 

50. When submitting claims to the Fair Fund on behalf of its clients, all Third-Party 

Filers must use the electronic filing template provided by the Fund Administrator in this matter. 

Third-Party Filers that do not comply with the template and format provided by the Fund 

Administrator may be rejected. Third-Party Filers must also submit a signed master Claim Form and 

release, as well as proof of authority to file on behalf of the Preliminary Claimant(s) at the time the 

electronic file of transactions is submitted. Failure to do so may result in rejection of the claim.

51. Each Third-Party Filer must establish the validity and amount of each claim in its 

submission. Like all other Preliminary Claimants to the Fair Fund, Third-Party Filers must submit 

such supporting documentary evidence of purchases, dispositions, and holdings of Securities as the 

Fund Administrator deems necessary or appropriate to substantiate each individual claim. Without 

limitation, this includes the complete name of the Preliminary Claimant (beneficial account owner) 

and its TIN (for individuals) or EIN (for companies), sufficient contact information to confirm the 
10

identity of the beneficial owner, and documentation from the original bank, broker or other

institution of purchases and dispositions of Securities (account statements, confirmations and other 

documentation of purchases and dispositions), as well as holdings of the Securities on pertinent 

dates. Documentation generated by the Third-Party Filer as well as affidavits in lieu of supporting 

documentation, will not be accepted unless, for good cause, the Fund Administrator determines it 

acceptable. The Fund Administrator will have the right to request, and the Third-Party Filer will 

have the burden of providing to the Fund Administrator, any additional information and/or 

documentation deemed necessary by the Fund Administrator to substantiate the claim(s) contained in 

the submission. Documentation from a Third-Party Filer that is not acceptable to the Fund 

Administrator will result in rejection of the affected claim(s). The determination of the Fund 

Administrator to reject a claim for insufficient documentation, as reflected on the Final 

Determination Notice, is final and within the discretion of the Fund Administrator. 

52. The receipt of Securities by gift, inheritance, devise, or operation of law will not be 

deemed to be a purchase of Securities, nor will it be deemed an assignment of any claim relating to 

the purchase of such Securities unless specifically so provided in the instrument of inheritance. 

However, the recipient of Securities as a gift, inheritance, devise or by operation of law will be 

eligible to file a Claim Form and participate in the distribution of the Fair Fund to the extent the 

original purchaser would have been eligible under the terms of the Plan. Only one claim may be 

submitted with regard to the same transactions in Securities, and in cases where multiple claims are 

filed by the donor and donee, the donee claim will be honored, assuming it is supported by proper 

documentation. 

53. Claims on behalf of a retirement plan covered by Section 3(3) of ERISA, 29 U.S.C.§ 

1002(3), which do not include Individual Retirement Accounts and such plan’s participants, are 

properly made by the administrator, custodian or fiduciary of the plan and not by the plan’s 

participants. The Fund Administrator will distribute any payments on such claims directly to the 

administrator, custodian or fiduciary of the retirement plan. The custodian or fiduciary of the 

retirement plan will distribute any payments received in a manner consistent with its fiduciary duties 

and the governing account or plan provisions.

Claims Determination

54. The Fund Administrator will review all claim submissions and determine the 

eligibility of each Preliminary Claimant to participate in the Fair Fund by reviewing claim data and 

supporting documentation (or the lack thereof) and verifying the claim. The Fund Administrator 

will calculate each Eligible Claimant’s Recognized Loss pursuant to the Plan of Allocation. Each 

Preliminary Claimant will have the burden of proof to establish the validity and amount of his, her or 

its claim, and qualification as an Eligible Claimant. The Fund Administrator will have the right to 

request, and the Preliminary Claimant will have the burden of providing to the Fund Administrator, 

any additional information and/or documentation deemed relevant by the Fund Administrator. 

55. The Fund Administrator will provide a Claim Status Notice within one hundred 

twenty (120) days of the Claims Bar Date to each Preliminary Claimant who has filed a Claim Form 

with the Fund Administrator, setting forth the Fund Administrator's determination of the eligibility of 

the claim (eligible, partially or wholly deficient, or ineligible). The Claim Status Notice will provide 

to each Preliminary Claimant whose claim is deficient, in whole or in part, the reason(s) for the 

deficiency (e.g., failure to provide required information or documentation). In the event the claim is 
11

denied, in whole or in part, the Claim Status Notice will state the reason(s) for such denial. The 

Claim Status Notice will also notify the Preliminary Claimant of the opportunity to cure any 

deficiency or request reconsideration, or dispute the determination made by the Fund Administrator 

and provide instructions regarding what is required to do so.

56. Any Preliminary Claimant with a deficient claim will have thirty (30) days from the 

date of the Claim Status Notice to cure any deficiencies identified in theClaim Status Notice.

57. Any Preliminary Claimant seeking reconsideration of a denied claim must advise the 

Fund Administrator in writing within thirty (30) days of the date ofthe Claim Status Notice. All 

requests for reconsideration must include the necessary documentation to substantiate the basis upon 

which the Preliminary Claimant is requesting reconsideration of their claim. 

58. The Fund Administrator may, in its sole discretion, consider disputes of any nature 

presented in writing within thirty (30) days of the Claim Status Notice by Preliminary Claimants, 

and will consult Commission staff as appropriate. 

59. The Fund Administrator will send, as appropriate, a Final Determination Notice to all 

Preliminary Claimants who responded to the Claim Status Notice in an effort to cure a deficiency, 

seek reconsideration of a rejected claim, or dispute the determination made by the Fund 

Administrator, notifying the Preliminary Claimant of its determination. The Fund Administrator will 

send such Final Determination Notices no later than thirty (30) days following receipt of 

documentation or information in response to the Claim Status Notice, or such longer time as the 

Fund Administrator determines is necessary for a proper determination concerning the claim.

60. The Fund Administrator will have the authority, in its sole discretion, to waive 

technical claim deficiencies and approve claims on a case-by-case basis, or in groups of claims. All 

determinations made by the Fund Administrator in accordance with the Plan in any dispute, request 

for reconsideration, or request to cure a deficient claim will be final and not subject to appeal.

61. The Preliminary Claimant has the burden of notifying the Fund Administrator of a 

change in his, her or its current address and other contact information, and of ensuring that such 

information is properly reflected on the Fund Administrator's records.

Third-Party Review

62. After the Fund Administrator has completed the process of analyzing the claims and 

determining claim amounts in accordance with the Plan, and prior to the distribution of any funds, 

the Fund Administrator will engage an independent, third-party firm, not unacceptable to 

Commission staff, to perform a set of agreed upon procedures, review a statistically significant 

sample of claims and ensure accurate and comprehensive application of the Plan of Allocation. The 

Fund Administrator will communicate the results of the review to Commission staff together with 

any written analysis or reports related to the review, and, upon request, will make the firm available 

to the Commission staff to respond to questions concerning the review. 
12

Distribution Methodology

63. A Preliminary Claimant, who may have suffered a loss as a result of transactions in 

the Securities during the Relevant Period and who is not an Excluded Party will be deemed an 

Eligible Claimant. The Fund Administrator will calculate each Eligible Claimant’s Recognized Loss 

in accordance with the Plan of Allocation. All Eligible Claimants who are determined to receive a 

Distribution Payment will be deemed a Payee.

Establishment of a Reserve

64. Before determining the amount of funds available for distribution and calculating 

each Payee’s Distribution Payment, the Fund Administrator, in conjunction with the Tax 

Administrator, will establish a reserve to pay Administrative Costs and to accommodate any 

unexpected expenditures (the “Reserve”).

65. After all disbursements and Administrative Costs are paid, any remaining amounts in 

the Reserve will become part of the Residual described in paragraph 87 below.

Preparation of the Payment File

66. Within sixty (60) days following the date of the Final Determination Notices 

described in paragraph 59 above, the Fund Administrator will compile and send to the Commission 

staff a list identifying information for each Payee, including the name, address, and calculated 

Recognized Loss, as well as, the amount of the Distribution Payment for each Payee (the “Payee 

List”). The Fund Administrator will also provide a Reasonable Assurances Letter to the 

Commission staff, representing that the Payee List: (a) was compiled in accordance with the 

approved Plan; (b) is accurate as to Payees’ names, addresses, Recognized Losses and amounts of 

their Distribution Payments; (c) includes the number of Payees compensated; (d) the total amount 

being distributed; and (e) provides all information necessary to make a Distribution Payment to each 

Payee.

The Escrow Account

67. Prior to the disbursement of the Net Available Fair Fund, the Fund Administrator will 

establish an escrow account (the “Escrow Account”) with a United States commercial bank that is a 

well-capitalized financial institution as defined by the Federal Reserve Act, Subpart D, 12 C.F.R. 

208.43 and that is not unacceptable to the Commission staff (the “Bank”), pursuant to an escrow 

agreement (the “Escrow Agreement”) to be provided by Commission staff.

68. The Fund Administrator, pursuant to the Escrow Agreement, shall also establish with 

the Bank a separate deposit account (e.g. controlled distribution account, managed distribution 

account, linked checking and investment account) (the “Distribution Account”), insured by the 

Federal Deposit Insurance Corporation (“FDIC”) up to the guaranteed FDIC pass through limit. The 

Distribution Account shall be linked with the Escrow Account and shall be named, and records 

maintained, in accordance with the Escrow Agreement. 

69. During the term of the Escrow Agreement, the portions of the Fair Fund transferred to 

the Escrow Account (the “Escrow Property”), shall be invested and reinvested in short-term U.S. 
13

Treasury securities backed by the full faith and credit of the United States Government or an agency 

thereof. The investment shall be, of a type and term necessary to meet the cash liquidity 

requirements for payments to Payees, tax obligations, and/or fees of the Tax Administrator and/or 

Fund Administrator, including investment or reinvestment in a bank account insured by the FDIC up 

to the guaranteed FDIC limit, or in money market mutual funds registered under the Investment 

Company Act of 1940 that invest 100% of their assets in direct obligations of the United States 

Government. 

70. The Fund Administrator shall provide duplicate original bank and/or investment 

statements on any accounts established by the Fund Administrator to the Tax Administrator on a 

monthly basis and shall assist the Tax Administrator in obtaining mid-cycle statements, as necessary.

71. The Fund Administrator shall deposit or invest funds in the Escrow and Distribution 

Accounts so as to result in the maximum reasonable net return, taking into account the safety of such 

deposits or investments. In consultation with Commission staff, the Fund Administrator shall work 

with the Bank on an ongoing basis to determine an allocation of funds between the Escrow and 

Distribution Account.

72. All interest, dividends, and/or income earned by the Escrow Property will accrue for 

the benefit of the Escrow Property. All Administrative Cost associated with the Escrow and 

Distribution Accounts will be the responsibility of the Fund Administrator, who may be reimbursed 

for said costs as provided in this Plan. No such Administrative Costs may be paid to the Bank, its 

agents, and/or its affiliates from the Escrow Property.

 Distribution of the Fair Fund

73. The Fund Administrator will seek to distribute the Net Available Fair Fund to all 

Payees only after all Claim Forms have been processed and all Preliminary Claimants whose claims 

have been rejected or disallowed, in whole or in part, have been notified and provided the 

opportunity to contest or cure pursuant to the procedures set forth herein.

74. Upon the Commission’s staff’s receipt, review, and acceptance of the Payee List and 

Reasonable Assurances Letter from the Fund Administrator, the Commission staff will seek an 

Order from the Commission pursuant to Rule 1101(b)(6) of the Commission’s Rules, 17 C.F.R. § 

210.1101(b)(6), to disburse funds to the Bank in accordance with the Payee List for distribution by 

the Fund Administrator in accordance with the Plan. All disbursements will be made pursuant to a 

Commission Order. 

75. Upon issuance of an Order to disburse, the Commission staff will direct the transfer of 

funds to the Bank in accordance with the Payee List. The Fund Administrator will then use its best 

efforts to commence mailing Distribution Payment checks and/or effect wire transfers within ten 

(10) business days of the release of the funds into the Escrow Account. All efforts will be 

coordinated to limit the time between the Escrow Account’s receipt of the funds and the issuance of 

Distribution Payments.

76. All Distribution Payments will be issued by the Fund Administrator from the 

Distribution Account. All checks will bear a stale date of one hundred twenty (120) days from the 

date of issuance. Checks that are not negotiated by the stale date will be voided, and the Bank will 
14

be instructed to stop payment on those checks. A Payee’s claim will be extinguished if he, she, or it 

fails to negotiate his, her or its check by the stale date, and the funds will remain in the Fair Fund, 

except as provided in paragraph 84. 

77. All payments will be preceded or accompanied by a communication that includes, as 

appropriate: (a) a statement characterizing the distribution; (b) a statement that the tax treatment of 

the distribution is the responsibility of each Payee and that the Payee should consult his, her or its 

tax advisor for advice regarding the tax treatment of the distribution; (c) a statement that checks will 

be void and cannot be reissued after one hundred twenty (120) days from the date the original check 

was issued; and (d) contact information for the Fund Administrator for questions regarding the 

Distribution Payment. The letter or other mailings to Payees characterizing a Distribution Payment 

will be submitted to the Tax Administrator and Commission staff for review and approval. 

78. All Distribution Payments, either on their face or in the accompanying mailing, will 

clearly indicate that the money is being distributed from the Fair Fund established by the 

Commission to compensate investors for harm as a result of securities law violations. 

79. Distribution Payments must be made by check or electronic payment payable to the 

Payee (the beneficial account owner). A Third-Party Filer shall not be the payee of any Distribution 

Payment check or electronic Distribution Payment. Any other payment arrangement must be 

discussed with the Fund Administrator in consultation with the Commission staff and must be 

authorized by the Payee. Compensation to a Third-Party Filer for its services may not be paid or 

deducted from the Distribution Payment. 

80. If, after discussion with the Fund Administrator in consultation with the Commission 

staff, and authorization by the Payee(s), a Distribution Payment is to be made to a Third-Party Filer 

to distribute to the Payee(s), the Third-Party Filer will be required to complete a certification, which 

will require them, at a minimum, to attest that any distribution to the custodian, trustee, or 

investment professional representing multiple potentially eligible beneficial owners, will be 

allocated for the benefit of current or former pooled investors and not for the benefit of management. 

The certification form will be available on the Fair Fund website and upon request from the Fund 

Administrator. All such Third-Party Filers must have an auditable mechanism available to the Fund 

Administrator and the Commission staff to confirm that each Payee received the Distribution 

Payment directed to them.

81. The submission of a Claim Form and the receipt and acceptance of a Distribution 

Payment by a Payee is not intended to be a release of a Payee’s rights and claims against any party.

82. Electronic or wire transfers may be utilized at the discretion of the Fund 

Administrator to transfer approved Distribution Payments to filers of claims on behalf of twenty (20) 

or more Payees. Wire transfers will be initiated by the Fund Administrator using a two-party check 

and balance system, whereby completion of a wire transfer will require an authorization by two 

members of the Fund Administrator’s senior staff.
15

Post Distribution; Handling of Returned or Uncashed Checks; and Reissues

83. The Fund Administrator shall use its best efforts to make use of commercially 

available resources and other reasonably appropriate means to locate all Payees whose checks are 

returned to the Fund Administrator as “undeliverable.” If new address information becomes 

available, the Fund Administrator will repackage the distribution check and send it to the new 

address. If new address information is not available after a diligent search (and in no event no later

than one hundred twenty (120) days after the initial mailing of the original check) or if the 

distribution check is returned again, the check shall be voided and the Fund Administrator shall 

instruct the issuing financial institution to stop payment on such check. If the Fund Administrator is 

unable to find a Payee’s correct address, the Fund Administrator, in its discretion, may remove such 

Payee from the distribution and the allocated Distribution Payment will remain in the Fair Fund for 

distribution, if feasible, to the remaining Payees.

84. The Fund Administrator will reissue checks to Payees upon the receipt of a valid, 

written request from the Payee prior to the initial stale date. In cases where a Payee is unable to 

endorse a Distribution Payment check as written (e.g., name changes, IRA custodian changes, or 

recipient is deceased) and the Payee or a lawful representative requests the reissuance of a 

Distribution Payment check in a different name, the Fund Administrator will request, and must 

receive, documentation to support the requested change. The Fund Administrator will review the 

documentation to determine the authenticity and propriety of the change request. If, in the discretion 

of the Fund Administrator, such change request is properly documented, the Fund Administrator will 

issue an appropriately redrawn Distribution Payment to the requesting party. Reissued checks will 

be void at the later of one hundred twenty (120) days from issuance of the original check or sixty 

(60) days from the reissuance, and in no event will a check be reissued after one hundred twenty 

(120) days from the date of the original issuance without the approval of Commission staff.

85. The Fund Administrator will make and document all reasonable efforts to contact 

Payees who have failed to negotiate their Distribution Payment check and take appropriate action to 

follow up on the status of uncashed checks at the request of Commission staff. The Fund 

Administrator may reissue such checks subject to the time limits detailed herein.

Disposition of Undistributed Funds

86. If funds remain following the initial distribution and payment of all Administrative 

Costs, the Fund Administrator, in consultation with the Commission staff, may seek subsequent 

distribution of any available remaining funds, pursuant to the Commission’s Rules. 

87. A residual within the Fair Fund will be established for any amounts remaining after 

the final disbursement to Payees from the Fair Fund (the “Residual”). The Residual may include 

funds from, among other things, amounts remaining the Reserve, distribution checks that have not 

been cashed, checks or electronic payments that were not delivered or returned to the Commission, 

tax refunds for overpayment or for waiver of IRS penalties.

88. All funds remaining in the Residual that are infeasible to distribute to investors will 

be returned to the Commission and transferred to the U.S. Treasury after the final accounting is 

approved by the Commission. 
16

Accountings

89. Pursuant to Rule 1105(f) of the Commission’s Rules, during the first ten (10) days of 

each calendar quarter after funds have been transferred from the BFS to the Bank, the Fund 

Administrator will file with the Commission an accounting of all monies earned or received and all 

monies spent in connection with the administration of the Plan on a standardized accounting form 

provided by the Commission staff.

90. Upon completion of all distributions to Payees pursuant to the procedures described 

above, the Fund Administrator shall arrange for the payment of all Administrative Costs, transfer all 

remaining funds to the Commission, and submit a final accounting for approval by the Commission 

on a standardized form provided by the Commission staff. The Fund Administrator will also submit 

a report to the Commission staff containing the final distribution statistics regarding distributions to 

individuals and entities, and such other information requested by the Commission staff.

Termination of the Fair Fund

91. The Fair Fund will be eligible for termination and the Fund Administrator will be 

eligible for discharge after all of the following have occurred (a) a final accounting, in a standard 

accounting format provided by the Commission staff, has been submitted by the Fund Administrator 

and approved by the Commission; (b) all Administrative Costs have been paid; and (c) any amount 

remaining in the Fair Fund has been returned to the Commission for transfer to U.S. Treasury. Once 

the Commission has approved the final accounting, the Commission staff will seek an order from the 

Commission authorizing: (a) the transfer of the Residual that is infeasible to return to investors, and 

any amounts returned to the Fair Fund in the future that are infeasible to return to investors, to the 

U.S. Treasury, subject to Section 21F(g)(3) of the Exchange Act; (b) discharge of the Fund

Administrator; (c) cancellation of the Fund Administrator’s bond; and (d) termination of the Fair 

Fund.

92. Once the Fair Fund has been terminated and funds, if any, are transferred to the U.S. 

Treasury, no further claims will be allowed and no additional payments will be made whatsoever.

Miscellaneous

93. When administering this Plan, the Fund Administrator, and/or each of its designees, 

agents and assigns, may rely on: all applicable law; orders issued by the Commission, including 

orders issued by delegated authority; orders issued by an administrative law judge, if any, appointed 

in this proceeding; and any records, including records containing investor information, provided by 

Commission staff. 

94. Should any additional funds be received pursuant to Commission or Court order, 

agreement, or otherwise, prior to the Commission’s termination of the Fair Fund, such funds will be 

added to the Fair Fund and distributed, if feasible, in accordance with the Plan, pursuant to the 

Commission’s Rules. 
17

Wind-down and Document Retention

95. The Fund Administrator will shut down the website, P.O. Box and customer service 

telephone line(s) established specifically for the administration of the Fair Fund six (6) months after 

the transfer of any remaining funds to the Commission, or at such earlier time as the Fund 

Administrator determines with the concurrence of the Commission staff. 

96. The Fund Administrator will retain all materials submitted by Preliminary Claimants 

in either paper or electronic form for a period of six (6) years from the date of approval of a final 

fund accounting. Materials maintained in electronic form must be accessible and readable for the 

duration of retention. Pursuant to the Commission staff's direction, the Fund Administrator will 

either turn over to the Commission or destroy all materials, including documents in any media, upon 

expiration of this period.

VII. NOTICE AND COMMENT PERIOD

97. The Notice of Proposed Plan of Distribution and Opportunity to Comment (the 

“Notice”) will be published on the Commission’s website at 

http://www.sec.gov/litigation/fairfundlist.htm. Any person wishing to comment on the Plan must do 

so in writing by submitting their comments to the Commission within thirty (30) days of the 

publication of the Notice: (a) to the Office of the Secretary, United States Securities and Exchange 

Commission, 100 F Street, NE, Washington, DC 20549-1090; (b) by using the Commission’s 

Internet comment form (www.sec.gov/litigation/admin.shtml); or (c) by sending an email to rulecomments@sec.gov. Comments submitted by email or via the Commission’s website should 

include “Administrative Proceeding File Number 3-20165” in the subject line. Comments received 

will be available to the public. Persons should only submit comments that they wish to make 

publicly available.
1

EXHIBIT A

Plan of Allocation

This Plan of Allocation is designed to compensate investors based on their losses on 

shares of General Electric common stock (the “Securities”) purchased from October 16, 2015 

and continuing until the market close on January 16, 2018 (the “Relevant Period”) due to the 

misconduct of the Respondent. Investors who did not purchase shares of the Security during the 

Relevant Period at prices inflated by the Respondent’s misconduct or who are an Excluded 

Party1are ineligible to recover under this Plan. A Preliminary Claimant, who submits a valid 

claim, who may have suffered a loss as a result of transactions in the Securities during the 

Relevant Period, who is not an Excluded Party, will be deemed an Eligible Claimant. Artificial 

inflation in the price of the Security over various date ranges surrounding corrective disclosures 

and average closing prices of the Security during the 90-day Lookback Period (defined below) 

have been calculated by the Commission’s staff economists and are reflected in Table A and 

Table B, respectively.

The Fund Administrator will calculate the amount of loss for each share of the Securities 

purchased during the Relevant Period (“Recognized Loss per Share”) as follows: 

For each share of the Security purchased from October 16, 2015 through January 16, 

2018, and

A. Sold prior to October 23, 2017, the Recognized Loss per Share is $0.00.

B. Sold on or after October 23, 2017, and prior to the close of trading on 

January 16, 2018, the Recognized Loss per Share is the lesser of:

i. the amount of inflation per share on the purchase/acquisition date 

as set forth in Table A below minus the amount of inflation per 

share on the sale date as set forth in Table A below; or

ii. the purchase/acquisition price minus the sale price.

C. Sold after the close of trading on January 16, 2018 and prior to the close of 

trading on April 16, 2018 (the “Lookback Period”), the Recognized Loss 

per Share is the least of:

i. the amount of inflation per share on the 

purchase/acquisition date as set forth in Table A below; 

ii. the purchase/acquisition price minus the moving average 

closing price of GE common stock on the sale date as set 

forth in Table B below; or

iii. the purchase/acquisition price minus the sale price.

 

1

 All capitalized terms used herein but not defined shall have the same meanings ascribed to them in the Plan.
2

D. Held as of the close of trading on April 16, 2018, the last day of the 

Lookback Period, the Recognized Loss per Share is the lesser of:

i. the amount of inflation per share on the purchase/acquisition date 

as set forth in Table A below; or

ii. the purchase/acquisition price minus $14.56 (the average closing 

price of GE common stock during the Lookback Period, as shown 

on the last row in Table B below).

If the Recognized Loss per Share calculates to a negative number, reflecting a gain, the 

Recognized Loss per Share on such shares will be $0.00. 

All prices mentioned in the calculations exclude all taxes, fees and commissions. 

Purchases and sales shall be deemed to have occurred on the “contract” or “trade” date as 

opposed to the “settlement” or “payment” date.

Additional Provisions

FIFO Methodology: For each Eligible Claimant who made multiple purchases and sales 

of Security during the Relevant Period, the transactions will be matched according to the first-in, 

first-out (“FIFO”) method. The earliest sales during the Relevant Period will be matched first 

against any holdings at the opening of the Relevant Period. Once the beginning holdings have 

all been matched, or in the event that the Eligible Claimant had no beginning holdings, then any 

further sales will be matched against the earliest Relevant Period purchases and chronologically 

thereafter.

Acquisitions: The receipt or grant of the Security to the Eligible Claimant by gift, devise, 

inheritance, or operation during the Relevant Period is not considered an eligible purchase if the 

original purchase did not occur during the Relevant Period. Such shares are not eligible for a 

recovery and will be excluded from the Recognized Loss calculation.

Options and Derivatives: GE common stock is the only security eligible for recovery 

under this Plan. Option contracts to purchase or sell the Security are not securities eligible for 

recovery under the Plan. With respect to the Security purchased or sold through the exercise of 

an option, the purchase/sale date is the exercise date of the call and the assignment date of the 

put, and the purchase/sale price is the strike price of the call at the time of exercise and the strike 

price of the put at the time of assignment. Any other transactions in the Security during the 

Relevant Period that are pursuant to, or in connection with, a swap, or another derivative are not 

eligible for a recovery and will be excluded from the Recognized Loss calculation. 

Short Sales: Shares purchased during the Relevant Period to cover short positions held at 

the beginning of the Relevant Period or to cover short positions opened during the Relevant 

Period will have a Recognized Loss per Share of $0.00. The date of a “short sale” is deemed to 

be the date of sale of the Security and the date of covering a “short sale” is deemed to be the date 

of purchase of the Security. The earliest Relevant Period purchases will be matched against any 
3

short position existing on the date prior to the start of the Relevant Period until that short position 

is fully covered.

Recognized Loss: An Eligible Claimant’s Recognized Loss will be the sum of the 

Recognized Loss per Share, as calculated above, on all shares of the Security purchased or 

acquired during the Relevant Period and will be subject to certain minimum and maximum 

constraints described below. If the Recognized Loss calculates to a negative number (i.e., a 

gain), then the Recognized Loss will be $0.00. 

Market Loss Limitation: If an Eligible Claimant’s actual market loss on shares of the 

Security purchased during the Relevant Period is less than his, her or its Recognized Loss, then 

the Eligible Claimant’s Recognized Loss shall be limited to the actual market loss amount. If the 

actual market loss calculates to a gain, then the Claimant’s Recognized Loss will be $0.00. The 

actual market loss will be calculated as (a) the total purchase amount for shares of the Security 

purchased during the Relevant Period,2less the sum of (b) the sales proceeds from shares of the 

Security purchased/acquired during the Relevant Period and sold during the Relevant Period or 

during the Lookback Period,3and (c) the holding value on the remaining of those shares,4 which 

for the purposes of this calculation will be $14.56 per share, the moving average price as of the 

last day of the Lookback Period.

Allocation of Funds: If the Net Available Fair Fund is equal to or exceeds the sum of 

Recognized Losses of all Eligible Claimants, each Eligible Claimant’s distribution amount will 

equal his, her or its Recognized Loss, plus “Reasonable Interest” if applicable. If the Net 

Available Fair Fund is less than the sum of the Recognized Losses of all Eligible Claimants, each 

Eligible Claimant’s distribution amount will equal his, her or its “Pro Rata Share” of the Net 

Available Fair Fund (and no Reasonable Interest). In either case, the distribution amount will be 

subject to the “Minimum Distribution Amount.”

Reasonable Interest: If the Net Available Fair Fund exceeds that necessary to pay all 

Eligible Claimants his, her, or its Recognized Losses in full, the Fund Administrator, in 

consultation with the Commission staff, may include reasonable interest in the distribution 

amount to compensate Eligible Claimants for the time value of his, her, or its respective 

Recognized Losses. Reasonable Interest will be calculated using the Short-term Applicable 

Federal Rate plus three percent (3%), compounded quarterly October 16, 2015 through 

December 9, 2020. If there are insufficient funds to pay Reasonable Interest in full to all Eligible 

Claimants, each Eligible Claimant’s Reasonable Interest amount will be his, her or its Pro Rata

Share of the excess funds.

 

2 Purchases/acquisitions that are not eligible for recovery will not be considered for purposes of calculating the actual 

market loss. 

3 Sales of the Security during the Relevant Period will be matched first against the opening position and the proceeds 

of such sales will not be considered for purposes of calculating the actual market loss.

4 The actual market loss will also include realized gains/losses on short positions opened and closed in the Security 

during the Relevant Period.
4

Pro Rata Distribution: A Pro Rata Share computation is intended to measure Eligible 

Claimant’s Recognized Losses against one another. The Fund Administrator shall determine 

each Eligible Claimant’s Pro Rata Share as the ratio of his, her, or its Recognized Loss to the 

sum of Recognized Losses of all Eligible Claimants.

Minimum Distribution Amount: The Minimum Distribution Amount will be $10.00

(inclusive of Reasonable Interest, if any). If an Eligible Claimant’s distribution amount is less 

than the Minimum Distribution Amount, that Eligible Claimant will be deemed ineligible to 

receive a Distribution Payment and his, her, or its distribution amount will be reallocated on a 

pro-rata basis to Eligible Claimants whose distribution amounts are greater than or equal to the 

Minimum Distribution Amount. 

Payee: An Eligible Claimant whose distribution amount (inclusive of Reasonable 

Interest, if any) that equals or exceeds the Minimum Distribution Amount will be deemed a 

Payee and receive a Distribution Payment equal to his, her, or its distribution amount. In no 

event will a Payee receive from the Fair Fund more than his, her, or its Recognized Loss, plus 

Reasonable Interest, if applicable.

Prior Recovery: To avoid payment of a windfall, the Distribution Payment will be no 

larger than the Payee’s Recognized Loss minus the amount of any compensation for the loss that 

resulted from the conduct described in the Order that was received from another source (e.g., 

class action settlement), to the extent known by the Fund Administrator, Reasonable Interest, if 

awarded, may be added to such Distribution Payment.
5

Table A: GE Common Stock Inflation Schedule

Date Range Inflation 

per Share

October 16, 2015 through October 22, 2017 $4.88

October 23, 2017 through November 12, 2017 $3.49

November 13, 2017 $2.04

November 14, 2017 through January 16, 2018 $0.98

On or after January 17, 2018 $0.00

Table B: GE Common Stock Moving Average Closing Price, January 17, 2018 – April 16, 2018

Moving 

Average 

Closing 

Price from 

January 17, 

2018 to Date 

Shown Date

Moving 

Average 

Closing 

Price from 

January 17, 

2018 to Date 

Shown Date

Moving 

Average 

Closing 

Price from 

January 17, 

2018 to Date 

Shown

1/17/2018 $17.35 2/15/2018 $15.74 3/19/2018 $15.13

1/18/2018 $17.06 2/16/2018 $15.71 3/20/2018 $15.10

1/19/2018 $16.79 2/20/2018 $15.67 3/21/2018 $15.07

1/22/2018 $16.64 2/21/2018 $15.62 3/22/2018 $15.03

1/23/2018 $16.69 2/22/2018 $15.59 3/23/2018 $14.99

1/24/2018 $16.65 2/23/2018 $15.54 3/26/2018 $14.95

1/25/2018 $16.58 2/26/2018 $15.51 3/27/2018 $14.92

1/26/2018 $16.52 2/27/2018 $15.48 3/28/2018 $14.89

1/29/2018 $16.50 2/28/2018 $15.43 3/29/2018 $14.86

1/30/2018 $16.44 3/1/2018 $15.39 4/2/2018 $14.83

1/31/2018 $16.42 3/2/2018 $15.35 4/3/2018 $14.80

2/1/2018 $16.38 3/5/2018 $15.32 4/4/2018 $14.77

2/2/2018 $16.33 3/6/2018 $15.30 4/5/2018 $14.75

2/5/2018 $16.23 3/7/2018 $15.28 4/6/2018 $14.72

2/6/2018 $16.16 3/8/2018 $15.26 4/9/2018 $14.68

2/7/2018 $16.11 3/9/2018 $15.25 4/10/2018 $14.66

2/8/2018 $16.01 3/12/2018 $15.24 4/11/2018 $14.63

2/9/2018 $15.95 3/13/2018 $15.22 4/12/2018 $14.60

2/12/2018 $15.89 3/14/2018 $15.20 4/13/2018 $14.58

2/13/2018 $15.83 3/15/2018 $15.18 4/16/2018 $14.56

2/14/2018 $15.78 3/16/2018 $15.16