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Wednesday, June 11, 2014

Goldman, Bain to pay $121 million in LBO collusion settlement, (NYSE: BX), (NYSE: GS)

Goldman Sachs Group Inc 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, Carlyle Group, KKR & Co, 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.

The Blackstone Group L.P. (Blackstone) is a manager of private capital and provider of financial advisory services. Shares of BX traded higher by 0.89% or $0.3/share to $33.94. In the past year, the shares have traded as low as $19.15 and as high as $35.39. On average, 5660090 shares of BX exchange hands on a given day and today's volume is recorded at 3324930.

The Goldman Sachs Group, Inc. (Goldman Sachs), is a global investment banking, securities and investment management firm that provides a range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Shares of GS fell by 0.56% or $-0.93/share to $165.43. In the past year, the shares have traded as low as $148.71 and as high as $181.13. On average, 3039570 shares of GS exchange hands on a given day and today's volume is recorded at 2004076.



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