Three major equity firms to settle collusion lawsuit

Kohlberg Kravis Robert, the Blackstone Group and TPG to pay a combined $325 million

Three of the largest private equity firms in the U.S. have agreed to settle a seven year old lawsuit that accuses them of conspiring to drive down the price of takeover targets. Kohlberg Kravis Robert, the Blackstone Group and TPG have revealed on Aug 7 that they will pay a combined $325 million, the New York Times reports that the details of the settlement were finalized in late July, but had been kept quiet until the announcement.

The lawsuit, which was filed in 2007, alleged that seven high powered private equity firms  acted as unofficial partners, colluding to drive down the cost of valuable corporate targets. Emails citied in the suit indicate that the private equity firms involved would agree not to bid on certain target as part of a larger understanding, effectively reducing competition for the deals.

Executive Editor

author image

Chris DiMarco

Chris DiMarco, Executive Editor of InsideCounsel magazine, has a background in multimedia production with previous involvement in projects in which he developed and created content...

Bio and more articles

Join the Conversation

Advertisement. Closing in 15 seconds.