Goldman Sachs and Bain Capital have agreed to pay a combined $US121 million ($A131 million) to settle a private US lawsuit alleging collusion with other firms to suppress the price of takeovers.
Under the terms of the settlement, which must be approved by a federal judge, Goldman will pay $US67 million and Bain $US54 million to settle the claims in the multi-party lawsuit, according to documents filed on Wednesday by the two sides in the litigation.
The case, originally filed in 2007 by a group of investors against 13 private-equity and financial heavyweights, accused them of working together to "rig bids, restrict the supply of private equity financing, fix transaction prices" and divide up the market.
According to the original case filing, seven leveraged-buyout transactions were affected by the alleged collusion, including deals for pipeline company Kinder Morgan and high-end department store chain Neiman Marcus.
Thomas Undlin, a co-lead counsel for plaintiffs at Robins, Kaplan, Miller and Ciresi, said cases against some of the original defendants were dismissed by courts.
With Bain and Goldman settling, the remaining defendants are: Blackstone Group, Kohlberg Kravis Roberts & Company, Texas Pacific Group, Silver Lake Partners and Carlyle Group. A trial is scheduled for November in Boston.
Neither Bain nor Goldman accepted fault or wrongdoing in the settlement.
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