Goldman Sachs Group Inc (GS.N) will pay $67 million and Bain Capital Partners LLC will pay $54 million to settle their portions of a lawsuit accusing several big private equity firms of conspiring not to outbid each other in takeovers.
The preliminary settlement with former shareholders of companies acquired in leveraged buyouts from 2003 to 2007 was disclosed in papers filed on Wednesday in Boston federal court, and requires approval by U.S. District Judge William Young.
Goldman and Bain did not admit wrongdoing in agreeing to settle. Five defendants remain: Blackstone Group (BX.N), Carlyle Group (CG.O), KKR & Co (KKR.N), Silver Lake Partners and TPG Capital Management. A trial is set for Nov. 3.
The December 2007 lawsuit, which has shined a light on how Wall Street operates behind the scenes, accused private equity firms of running an "overarching" conspiracy not to outbid, or "jump," each other after transactions were announced.