General Electric's stock briefly fell below $14 in Monday trading as investors reacted to news late Friday that the U.S. Justice Department could take action in connection with alleged subprime mortgage violations.
That update, which was made in a filing with the Securities and Exchange Commission, also provided details about the expected restatement of its 2016 and 2017 financial results. Based on this information, some suspect it will be very difficult for GE to reach its 2018 forecast.
The company, which is in the midst of a restructuring effort, also nominated three new directors, as it looks to downsize its board.
Shares of the company were recently trading down 2.5 percent, after sinking as low as $13.95, a level not seen since July 2010, when GE shares hit $13.81.
"We're still not seeing a bottom yet here on the stock," RBC Capital Markets analyst Deane Dray told CNBC's "Power Lunch."
The update about the Justice Department investigation emerged in a regulatory filing, where GE said the company faces allegations that its GE Capital unit, and its now defunct WMC Mortgage business, violated U.S. law in connection with subprime mortgages.
The department "is likely to assert" violation of financial regulatory law, GE said in the filing, due to "WMC's origination and sale of subprime mortgage loans in 2006 and 2007." The company, which sold WMC in 2007, said the warning about potential Justice action includes the outcomes from investigations of other financial firms.
GE had set aside $626 million in reserves to pay claims filed against WMC, according to Deutsche Bank. However, the reserves have declined to $416 million, and the latest filing means GE may be on the hook for even more, said Deutsche Bank, noting the Justice Department "has fined financial institutions tens of billions" for taking part in the mortgage crisis of 2008.