Legal News

Colluding Private Equity Firms Given Last Chance to Reveal Material Facts
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Friday, responding to a heavily blacked-out version of a 217-page complaint released by private equity firms alleged to have colluded to drive down prices of companies they sought to buy, U.S. District Judge Edward Harrington said the firms had failed to overcome the “presumption of public access,” and had failed to explain, how the details they had redacted could cause “specific and severe harm,” if revealed.

The private equity firms involved, namely Bain Capital Partners LLC, Blackstone Group LP, Goldman Sachs, KKR & Co and others were responding to a motion made by the New York Times to make the entire complaint public, and the companies have been seeking to block full transparency in the matter.

The federal judge gave them one more chance to release a proper version of the complaint or explain how the portions they had redacted from the complaint could cause material harm if the public gained knowledge. The lawsuit contains embarrassing allegations that the private equity firms named had colluded to drive down prices on companies, which they then proceeded to buy.

  
What
Where


Shareholders of more than two dozen companies bought by the group of firms between 2003 and 2007 claim that they have lost billions of dollars because of conspiracies that deflated prices before takeovers. Instances cited by the complainants include the $32.1 billion leveraged buyout in 2006 of the hospital company HCA. Complaints say that HCA, which was bought by Bain and KKR, saw a curious buying event where some firms that had “strong interest” in HCA suddenly decided not to bid, and other firms that had prepared to outbid Bain and KKR by $1.6 billion, strangely, decided to “stand down.”

On Friday, U.S. District Judge Edward Harrington, after criticizing the redacted release of the complaint, said that the firms should file a second redacted complaint and justify why some details have been kept secret. It is then in the hands of the court whether to accept the second redacted version of the complaint or release the entire complaint to the public.

A New York Times spokeswoman, Abbe Serphos said NYT was pleased that the court “recognized the importance of public access to judicial documents and properly placed on defendants the burden of justifying any sealing.”

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Mitt Romney, a founder of Bain was not named in the complaint and lawyers for the private equity firms said his possible interest in Bain funds justified not releasing the full complaint, as this being election year.

The case is Dahl et al v. Bain Capital Partners LLC et al, U.S. District Court, District of Massachusetts, No. 07-12388.





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

General Municipal Law Attorney with land use experience

USA-CA-Oakland

Oakland office of our client seeks general municipal law attorney with experience advising public ag...

Apply Now

Senior Land Use Attorney with experience

USA-CA-San Francisco

San Francisco office of our client seeks senior land use attorney with 7+ years of experience. The c...

Apply Now

Immigration Attorney with portable business

USA-VA-McLean

McLean office is seeking an immigration attorney with $500,000+ in portable business.

Apply Now

Litigation Attorney with 5-7 years of civil tort experience

USA-TX-Dallas

Dallas office of our client seeks litigation attorney with 5-7 years of civil tort experience, inclu...

Apply Now

RELEVANT JOBS

Experienced Insurance Defense Attorney Needed

USA-NY-Bohemia

Insurance Defense firm (with 15 attorneys in Suffolk and Mineola location), seeks attorneys with 5+ ...

Apply now

Corporate / Commercial Attorney | Lebanon, NH

USA-NH-Lebanon

Downs Rachlin Martin PLLC seeks an experienced corporate / commercial attorney to join its Lebanon o...

Apply now

Business Law Junior Associate | Burlington, VT

USA-VT-Burlington

Downs Rachlin Martin seeks associate attorney with 1-3 years of experience to join its Commercial an...

Apply now

Business Law Associate | Burlington

USA-VT-Burlington

Downs Rachlin Martin is seeking an attorney with 4 to 8 years of experience to join its very busy pr...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top