[NTIACNews]NDT Industry News: former Panametrics principal shareholders file suit against GE

[Chris R. Coughlin]

Hello All;

Former Panametric principal shareholders David Chleck and Edmund 
Carnevale are seeking $25 million in damages from General Electric in a 
federal lawsuit filed this week, claiming securities fraud and deceptive 
business practices in its $220 million acquisition of Panametrics last year.

The two allege that GE released false statements, manipulated accounts 
receivable, and engaged in other accounting tactics to avoid paying the 
agreed-upon purchase price.

The suit further alleges GE ignored its obligation under the agreement 
to acquire Panametrics to conform to GAAP (Generally Accepted Accounting 
Principles), used other manipulations to justify a large post-closing 
adjustment relating to items it had examined and accepted before the 
closing, and that GE violated contractual agreements with respect to 
certain accounts receivable where Panametrics shareholders were to 
receive the proceeds.

GE agreed to acquire closely held Panametrics from Chleck and Carnevale 
last July for $220 million plus assumed liabilities.  NTIAC discussed 
this acquisition and others in the March 2003 Newsletter (see 
http://www.ntiac.com/news/NDTConsolidation.pdf for the article or 
http://www.ntiac.com/news/0303news.pdf for the complete Newsletter).

Regards,
Chris

-- 
Chris Coughlin | NTIAC | 415 Crystal Creek Drive | Austin TX 78745
512.263.2101x227 | 800.684.2239 | FAX 512.263.3530
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