The Blackstone Group has agreed to pay $85m to settle a lawsuit brought by a group of investors that accused it of misrepresenting some investments ahead of its 2007 initial public offering.
The New York Times reports that the settlement, filed in Federal District Court in Manhattan on Wednesday, closes the door on a five-year legal battle with investors who contended that the firm misrepresented the value of three investments in its prospectus.
Blackstone denied any wrongdoing or liability in the settlement.
n June 2007, at the peak of the private equity boom, Blackstone raised $4.1bn in a share offering on the New York Stock Exchange with much fanfare.
It was one of the first of a group of highly secretive private equity firms to go public, attracting the kind of media attention normally left for Hollywood movie premieres. Camera operators and reporters lined up at the stock exchange to cover the event, according to a New York Times report at the time.
A group of investors, unhappy with the way the company disclosed its investments, filed a complaint against the company and its chairman, Stephen A. Schwarzman, in April 2008, less than a year after the listing.
They contended the Blackstone did not properly disclose the value of its investments in three companies – a monoline insurer, a semiconductor manufacturer and a real estate company
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