Bloomberg News

Goldman Sachs, Bain Seek Dismissal of Bid-Rigging Lawsuit

July 24, 2012

Goldman Sachs Group Inc. (GS:US), Bain Capital Partners LLC and Carlyle Group LP (CG:US) urged a federal judge to dismiss an investor lawsuit accusing the largest investment banks and private-equity firms of conspiring to rig bids on leveraged buyouts.

The financial companies were among the defendants seeking summary judgment from U.S. District Judge Edward Harrington in the five-year-old class-action, or group lawsuit, according to court filings yesterday in Boston.

Goldman Sachs, in its filing, said the plaintiffs haven’t proved that the banks and private equity firms “participated in any conspiracy in violation of the antitrust laws.” Most documents supporting the motions are under seal. The plaintiffs are expected to file their motions for summary judgment next month. The financial companies seek oral arguments in court.

Individuals and a pension fund that held shares in companies including Freescale Semiconductor Ltd. (FSL:US), Neiman Marcus Group and Aramark Holdings Corp. sued the firms in 2007 and 2008. Two different lawsuits were consolidated by the judge, who denied the financial firms’ motion to move the case to federal court in New York.

“There was a conspiracy among private equity firms to rig bids, restrict the supply of private equity financing, fix transaction prices and divide up the market for private equity services for leveraged buyouts,” the plaintiffs said in their lawsuit.

The defendants also include Blackstone Group LP (BX:US), Kohlberg Kravis Roberts & Co. LLP, JP Morgan Chase & Co. (JPM:US), Apollo Global Management LLC, (APO:US) Providence Equity Partners Inc., Thomas H. Lee Partners LP, Silver Lake Technology Management LLC and TPG Capital.

The case is Dahl v. Bain Capital Partners LLC, 07-12388, U.S. District Court, District of Massachusetts (Boston).

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net


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Companies Mentioned

  • GS
    (Goldman Sachs Group Inc/The)
    • $157.44 USD
    • 0.22
    • 0.14%
  • CG
    (Carlyle Group LP/The)
    • $33.45 USD
    • 0.46
    • 1.38%
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