A TOP lawyer at General Electric launched legal action against the company yesterday, claiming that she and more than 1500 other women executives were systematically underpaid and underpromoted.

Lawyer Lorene Schaefer claimed that women were underrepresented at the top levels and denied promotion to corporate executive ranks.

In papers filed in the US District Court, Ms Schaefer, 43, accused GE - the world's second-largest company - of gender discrimination.

Her suit names 13 GE officers and directors including chairman and chief executive Jeff Immelt.

Ms Schaefer is seeking class-action status. She wants $US500 million ($A608.16 million) in damages for 1500 to 1700 GE women executives and lawyers, her lawyer David Sanford said.

"This lawsuit is designed to achieve systemic injunctive relief to change GE's discriminatory pay and promotions practices and policies," Ms Schaefer said in court papers.

"Women have made few inroads into the domain of the officers' 'club' at GE."

GE spokesman Gary Sheffer strongly denied the claim.

"We will defend against these claims in court," he said.

Accusations of unfair pay and the continued dominance of male executives in the top ranks continue to dog corporate America.

Last month, Wall Street investment bank Morgan Stanley said it would pay $US46 million ($A55.95 million) to settle a class-action lawsuit that claimed it paid thousands of female brokers and trainees less than it paid men.

Wal-Mart Stores is facing the biggest sexual discrimination case in US history with a class action suit charging bias in the pay and promotions of more than one million women.

Ms Schaefer, who has worked at the Connecticut-based company for 13 years, was general counsel at GE's transportation unit.

She said that after two years in her post, GE managers told her in April she was to be demoted and replaced.

Ms Schaefer said GE officials said they wanted to replace her with a "big time" general counsel, but did not say how that differed from her qualifications.

"There are many, many women who have had the same experience as mine," she said.

Ms Schaefer was placed on administrative leave after hiring a lawyer.

GE shares closed down US15 (A18) to $US37.58 ($A45.71) on the New York Stock Exchange.

- Reuters