• District Court Dismisses Antitrust Class Action Complaint Against Private Equity Firms
  • February 29, 2008 | Authors: Daniel J. Leffell; Moses Silverman; Joseph J. Simons; Aidan Synnott; Andrew C. Finch
  • Law Firms: Paul, Weiss, Rifkind, Wharton & Garrison LLP - New York Office ; Paul, Weiss, Rifkind, Wharton & Garrison LLP - Washington Office ; Paul, Weiss, Rifkind, Wharton & Garrison LLP - New York Office
  • In the wake of the Department of Justice's inquiry into alleged anticompetitive behavior among certain private equity firms, a handful of class actions have been filed alleging collusion among private equity firms. These complaints generally allege a conspiracy among private equity firms to rig bids or otherwise collude to suppress the prices paid in going-private transactions. On February 21, 2008, in what appears to be the first decision to address these issues, a district court dismissed an action against two private equity firms that had joined forces in a bidding contest, concluding that the facts alleged did not establish a violation of the Sherman Act.