NEW YORK (Reuters) – Blackstone Group LP (BX.N) won dismissal on Tuesday of an investor class-action lawsuit accusing the private equity of firm of failing to disclose prior to its 2007 initial public offering that some of its holdings were losing value.
In a 15-page ruling, U.S. District Judge Harold Baer said the plaintiffs failed to state a claim upon which they could recover. He dismissed the case with prejudice, meaning the plaintiffs cannot bring their claims again.
Blackstone went public in June 2007, offering about 153 million common units at $31 each. The price has since fallen by more than half, closing on Tuesday up 21 cents at $14.66.
Lawyers for the plaintiffs did not immediately return requests for comment. A Blackstone spokesman said the New York-based firm was “delighted” with Baer’s decision.
The case is Landmen Partners Inc v. Blackstone Group LP, U.S. District Court, Southern District of New York (Manhattan), No. 08-3601. (Reporting by Jonathan Stempel and Megan Davies; editing by Andre Grenon)
Here is a copy of the ruling: