Bain, Goldman Settle P.E. Collusion Lawsuit

Jun 12 2014 | 10:55am ET

Bain Capital Partners and Goldman Sachs will pay more than $100 million to settle allegations that they and other big private-equity companies colluded to keep takeover prices down.

The settlement, which leaves just five of the original 11 p.e. firms still facing the lawsuit, was disclosed yesterday in court papers. The class-action lawsuit brought by shareholders of companies bought out by p.e. firms over the past decade, alleging that the firms agreed not to bid on eight companies sought by competitors, is set to go to trial on Nov. 3.

Bain will pay $54 million and Goldman $67 million. Their deals could bring the remaining respondents, Blackstone Group, Carlyle Group, Kohlberg Kravis Roberts, Silver Lake Partners and TPG Capital, to the negotiating table.

“It is harder to settle multi-defendant lawsuits in one fell swoop, and this may portend breaking the logjam,” Christopher Burke, a lawyer for the plaintiffs, told Reuters.


In Depth

Bob Doll's Ten Market Predictions For 2016

Jan 7 2016 | 9:37pm ET

Well-known market strategist Robert Doll has published his annual list of ten predictions...

Lifestyle

Citadel's Ken Griffin Donates $40M To New York's Museum of Modern Art

Dec 22 2015 | 9:23pm ET

Citadel founder Ken Griffin has donated $40 million to New York’s Museum of Modern...

Guest Contributor

Hedge Fund Marketing - Making the Most of Your Salesperson

Jan 20 2016 | 8:11pm ET

In this contributed article, Bruce Frumerman of Frumerman & Nemeth takes a close...