General Electric revealed some disappointing news to investors in its third quarter earnings report.
The company announced that the Securities and Exchange Commission is widening an investigation into its accounting tactics, focusing on a $22 billion charge in its power unit.
GE also confirmed that the Justice Department is looking into the same issue.
The charge in question is known as a "goodwill charge." It means the value of a company's asset has gone down substantially.
Here's what happened: Back in 2015, GE Power bought Alstom power businesses — just as the industry was heading toward renewable energy. That deal didn't turn out very well, so GE took $22 billion — the difference between Alstom's purchase price and its new value — as an impairment charge.
Also in the earnings report, GE said it plans to cut its dividend to a penny per share.
GE shares plummeted to their lowest price in nine years Tuesday on the news, which comes weeks after the company unexpectedly replaced its CEO.
According to GE, it's cooperating with the federal agencies in the investigations.
Additional reporting from Newsy affiliate CNN.
