2nd Circ. Revives Suit Over $4.5B Blackstone IPO

Law360, New York (February 10, 2011, 2:34 PM EST) -- The Second Circuit on Thursday revived a putative class action alleging that investment firm Blackstone Group LP failed to disclose material information to investors in connection with its $4.5 billion initial public offering in 2007.

The U.S. Court of Appeals for the Second Circuit reversed the lower court's decision to dismiss the suit, saying Blackstone had a duty to disclose information related to troubled investments in FGIC Corp., Freescale Semiconductor Inc. and certain real estate assets.

The case was remanded to the U.S. District Court for...
To view the full article, register now.