NEW YORK (Reuters) — General Electric
Co has agreed to pay as much as $18.25 million to settle a class
action lawsuit accusing it of rigging bids for municipal securities,
court papers filed on Friday show.
The accord requires court approval, and flows from litigation that
began in 2008 over claims that banks and finance companies conspired
to artificially fix prices for so-called municipal derivatives.
The GE settlement involved activity by three of the company's units:
GE Funding Capital Market Services, Trinity Funding Co and Trinity
Plus Funding Co.
A spokesman for General Electric did not immediately respond to a
request for comment.
The settlement was revealed two days after plaintiffs sought court
approval of a separate $20 million settlement with Bank of America
Corp over its own alleged big-rigging conduct.
The deal also came almost two weeks after a federal appeals court
reversed the convictions of three former GE banking executives for
conspiring to rig bids for contracts to invest municipal bond
The 2nd U.S. Circuit Court of Appeals has yet to release its
reasoning for overturning the 2012 convictions of the three GE
Capital bankers: Dominick Carollo, Steven Goldberg and Peter Grimm.
GE's settlement follows an earlier $30 million settlement by the
Fairfield, Connecticut-based company to resolve claims by state
In 2011, GE also agreed to pay $70 million to resolve a
investigation by the U.S. Department of Justice into its role in
bid-rigging of municipal bonds.