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US: Multi-billion dollar case remains a threat to private equity giants

By  |  March 14, 2013

A US district judge has denied private equity firms’ requested motion to toss out a lawsuit filed against them by former shareholders of various companies acquired by those firms. The defendants, which include Bain Capital Partners, Blackstone Group, J.P. Morgan Chase and others, are accused of colluding to surpress competition for leveraged buyouts. J.P. Morgan’s case was dismissed but eleven more motions remain. US District Court Judge Edward Harrington, who dismissed the request to toss the case, did suggest that the firms could produce a summary judgment motion to argue evidence does not genuinely show the parties’ involvement in the alleged bid-rigging. Chris Burke, lead counsel for the plaintiffs, has said that the case remains a multi-billion dollar one and that the next step is to pursue class action certification.

 

Full Content: Bloomberg

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