P.E. Giants Settle Collusion Lawsuit

Aug 8 2014 | 4:38am ET

Three more private-equity firms have agreed to settle allegations they colluded with one another to hold down the price of buyouts.

The Blackstone Group, Kohlberg Kravis Roberts and TPG Capital will pay a combined $325 million, avoiding a Nov. 3 trial. The deals leave only the Carlyle Group—of the original 11 firms accused—to defend itself before a jury.

The deal brings to more than $475 million the amount paid to shareholders of target companies, a far cry from the $1 billion plaintiffs planned to seek earlier this year. Bain Capital, Goldman Sachs and Silver Lake partners each settled earlier this year.

“It’s a pretty good settlement,” plaintiffs’ lawyer Patrick Coughlin said. “Antitrust cases like this are tough, and there aren’t many class-action settlements approaching $500 million like this one.”

Carlyle indicated earlier this month that it would buck the settlement trend, arguing that the plaintiffs haven’t shown that any of the firms actually would have bid on companies pursued by the other respondents. The firm said that the “claims are without merit and we will continue to vigorously contest the allegations.”


In Depth

Hedge Fund Veteran Peter Borish Talks Trading

Dec 17 2014 | 9:32am ET

Peter Borish says 2014 was “tricky” from a trading perspective. “The best...

Lifestyle

Cohen Donates $1.5M To GOP Governors Association

Dec 10 2014 | 7:13am ET

The Republican Governors Association raised close to $25 million from October 1...

Guest Contributor

Q&A With Daniel Gallancy: Institutional Interest In Bitcoin Is Growing Steadily

Dec 12 2014 | 7:54am ET

Daniel Gallancy is founder and CEO of SolidX, a provider of total return swaps for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.