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US online retailer Amazon.Com Inc has slapped a legal notice on Future Group, alleging that the retailer’s Rs 24,713 crore asset sale to Reliance Industries violated an agreement with the e-commerce giant.

“We have initiated steps to enforce our contractual rights,” a spokesperson for the Seattle-based e-commerce giant said. “As the matter is sub-judice, we can’t provide details.”

Amazon last year bought a 49 per cent stake in one of Future’s unlisted firms, Future Coupons Ltd, with the right to buy into flagship Future Retail after a period between 3 and 10 years. Future Coupons owns a 7.3 per cent stake in Future Retail.

In August this year, Future reached an agreement to sell its retail, wholesale, logistics and warehousing units to Reliance.

The deal is awaiting regulatory approvals.

A source who is advising Future Group in this matter told PTI that Future Coupons received the notice from Amazon.

The person added that the Kishore Biyani-led group intends to settle this matter amicably, either through mediation or arbitration.

E-mail send to Reliance Industries Ltd (RIL) and Future Group did not solicit any response.

The development comes at a time when Reliance Retail Ventures Ltd – run by India’s richest man Mukesh Ambani – has been on a fund raising spree, bringing in well over Rs 37,700 crore in less than four weeks from global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG and ADIA.

Reliance Retail’s network spans supermarkets, consumer electronics chain stores, cash and carry wholesale business, fast-fashion outlets and online grocery store, JioMart. It has a presence in nearly 7,000 towns, with 640 million footfalls across core categories of grocery, consumer electronics and apparel.

The investments equip Reliance Retail with funds to compete in both offline and online formats. The investments

General Electric shares edged higher Wednesday, but trailed broader market gains as investors reacted to the possibility of legal action linked to a Securities & Exchange Commission probe into some of its accounting practices.



a sign on the side of a building: General Electric Gets SEC Wells Notice Amid Insurance Accounting Probe


© TheStreet
General Electric Gets SEC Wells Notice Amid Insurance Accounting Probe

GE said Tuesday that it had received a so-called Wells Notice from the SEC that indicate authorities are looking into how the industrial group accounted for the run-off of some of its legacy insurance businesses that sat inside its GE Capital division.

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The SEC probe was triggered by a January 2018 move to take a $6.2 billion charge to its fourth-quarter earnings linked to weakness in its North American Life & Health insurance portfolio under then-CEO John Flannery.

GE also said at the time that GE Capital, its financing arm, would make $15 billion payments over the next seven years in order to shore up NALH’s statutory reserves, starting with around $3 billion in the first quarter of this year, and approximately $2 billion annually from 2019 to 2024.

“The Wells notice is neither a formal allegation nor a finding of wrongdoing. It allows GE the opportunity to provide its perspective and to address the issues raised by the SEC staff before any decision is made by the SEC on whether to authorize the commencement of an enforcement proceeding,” the company said in a statement Tuesday. “GE disagrees with the SEC staff with respect to this recommendation and will provide a response through the Wells notice process.”

“If the SEC were to authorize an action against GE, it could seek an injunction against future violations of provisions of the federal securities laws, the imposition of civil monetary penalties, and other relief within the Commission’s authority,” the company added. “The results of the

General Electric  (GE) – Get Report shares edged higher Wednesday, but trailed broader market gains as investors reacted to the possibility of legal action linked to a Securities & Exchange Commission probe into some of its accounting practices.

GE said Tuesday that it had received a so-called Wells Notice from the SEC that indicate authorities are looking into how the industrial group accounted for the run-off of some of its legacy insurance businesses that sat inside its GE Capital division.

The SEC probe was triggered by a January 2018 move to take a $6.2 billion charge to its fourth-quarter earnings linked to weakness in its North American Life & Health insurance portfolio under then-CEO John Flannery. 

GE also said at the time that GE Capital, its financing arm, would make $15 billion payments over the next seven years in order to shore up NALH’s statutory reserves, starting with around $3 billion in the first quarter of this year, and approximately $2 billion annually from 2019 to 2024.

“The Wells notice is neither a formal allegation nor a finding of wrongdoing. It allows GE the opportunity to provide its perspective and to address the issues raised by the SEC staff before any decision is made by the SEC on whether to authorize the commencement of an enforcement proceeding,” the company said in a statement Tuesday. “GE disagrees with the SEC staff with respect to this recommendation and will provide a response through the Wells notice process.”

“If the SEC were to authorize an action against GE, it could seek an injunction against future violations of provisions of the federal securities laws, the imposition of civil monetary penalties, and other relief within the Commission’s authority,” the company added. “The results of the Wells notice and any enforcement action are unknown

Boston-based GE first disclosed the government investigation into its accounting practices in 2018, after a multibillion-dollar underestimate of its insurance business created a shortfall in its reserves. At the time, then-Chief Financial Officer Jamie Miller said on a conference call with analysts, “There’s nothing here I‘m overly concerned about.” The SEC also delved into how GE recognized revenue from long-term service agreements for the maintenance of industrial equipment, including power plants and jet engines.

In a statement Tuesday to The Washington Post, GE said it has “fully cooperated with the SEC’s investigation,” adding, “We strongly disagree with the recommendation of the SEC staff and will provide a response through the Wells notice process.” GE said it is providing documents and other information requested by the SEC.

The SEC declined to comment.

GE will be given an opportunity to make a case against enforcement. But if the government proceeds, it could seek an injunction against future violations of securities law and impose fines. GE acknowledged a level of uncertainty in the filing on what the investigation means for its business: “The results of the Wells notice and any enforcement action are unknown at this time.”

Like other companies in the aviation business, GE has been battered by the coronavirus. In May, the company said it would cut 13,000 jobs from its jet engine operation. Industry executives have said it will take years for the aviation business to return to pre-pandemic levels. From its recent peak in February, the value of GE shares has been cut in half.

News of the Wells notice shook investors further, and the stock slumped 3.7 percent to close at $6.17. But the broader market was also hit by an update from President Trump, who tweeted Tuesday afternoon that he was withdrawing from stimulus negotiations until after

(RTTNews) – General Electric (GE) disclosed in a regulatory filing on Tuesday that it received a “Wells notice” from the U.S. Securities and Exchange Commission staff, saying that it is considering recommending a civil action against the company for possible violations of the securities laws.

GE has been informed that the issues the SEC staff may recommend that the SEC pursue relate to the historical premium deficiency testing for GE Capital’s run-off insurance operations, as well as GE’s disclosures relating to such run-off insurance operations.

The staff has not made a preliminary decision whether to recommend any action with respect to the other matters under investigation, the GE said in the regulatory filing.

GE noted that the Wells notice is neither a formal allegation nor a finding of wrongdoing.

The Wells notice allows GE the opportunity to provide its perspective and to address the issues raised by the SEC staff before any decision is made by the SEC on whether to authorize the commencement of an enforcement proceeding.

GE said it disagrees with the SEC staff with respect to the recommendation and will provide a response through the Wells notice process. If the SEC were to authorize an action against GE, it could seek an injunction against future violations of provisions of the federal securities laws, the imposition of civil monetary penalties, and other relief within the Commission’s authority.

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