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...
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