Judge Dismisses Providence, Apollo From Private-Equity Collusion Suit

Judge Dismisses Providence, Apollo From Private-Equity Collusion Suit

A federal judge on Thursday dismissed a pair of private-equity firms from a long-running civil suit alleging that many of the country’s biggest buyout firms colluded to keep down the prices they paid for companies during last decade’s takeover binge.

U.S. Senior District Judge Edward F. Harrington, of Boston’s federal court, ruled thatApollo Global Management LLC APO +0.58% and Providence Equity Partners LLC could be released from the case but that there was sufficient evidence to let the case proceed against several other large firms, including Blackstone Group LP BX +1.10%, Bain Capital LLC and Carlyle Group LP CG +2.87%.

The case was brought by investors who sold their shares in the companies in question to the private-equity firms as part of several boom-era buyouts. At issue is whether the buyout firms had agreements to not compete with each other on certain deals, which could have the effect of limiting the prices paid for the companies in question.Read more

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