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General Electric insurance risk lawsuit partially dismissed: report

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General Electric insurance risk lawsuit partially dismissed: report

General Electric Co.'s lawsuit concerning the company's alleged misrepresentation of insurance risk and securities fraud was partially dismissed, Reuters reported.

The two-year ongoing lawsuit combined six shareholder cases and accused General Electric's senior executives of covering up the company's risk vulnerability regarding its long-term care insurance business.

Earlier this month, General Electric's stocks plunged after Markopolos, who exposed Bernie Madoff's scam, alleged that General Electric was committing accounting fraud.

A recent report by Fitch Ratings highlighted that the industrial conglomerate was vulnerable to long-term care insurance business losses, but shrugged off many of the Markopolos' accusations.

The shareholders will be allowed to modify their charges, Reuters said, citing the judge's ruling.