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US: Goldman, Bain settle M&A bid-rigging lawsuit

 |  June 12, 2014

Goldman Sachs and Bain Capital have reportedly reached a settlement deal to end litigation against the firms for allegedly colluding to drive down the price of acquisitions ahead of the financial crisis.

According to court documents filed Wednesday, Goldman and Bain will pay a combined $121 million to settle the case filed by shareholders of various acquired company. While the settlement requires judge approval, the deal would end a sever-year-long legal battle that claimed the firms and other private equity companies conspired to drive down the cost of deals and reduce competition.

The settlement reportedly raises the stakes for the other defendants, however. Those include The Blackstone Group, Silver Lake, the Carlyle Group and others that are expected to head to trial later this year.

According to reports, the remaining defendants are likely to strike settlement deals of higher value than the $121 million agreement reached this week if they do not wish to go to trial.

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