The Blackstone Group L.P. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

The Blackstone Group L.P. Summary: According to a press release dated April 15, 2008, a class action has been commenced on behalf of purchasers of the common stock of The Blackstone Group L.Ppursuant and/or traceable to the Company’s initial public offering on or about June 25, 2007 seeking to pursue remedies under the Securities Act of 1933.

Specifically, the complaint charges Blackstone and certain of its officers and directors with violations of the Securities Act. Blackstone, through its subsidiaries, provides alternative asset management and financial advisory services worldwide.

According to the complaint, on or about June 21, 2007, Blackstone filed with the SEC a Form S-1/A Registration Statement (the “Registration Statement”), for the IPO. On or about June 25, 2007, the Prospectus (the “Prospectus”) with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 133 million shares of Blackstone’s common stock were sold to the public at $31 per share, thereby raising more than $4 billion.

The complaint alleges that the Registration Statement failed to disclose that certain of the Company’s portfolio companies were not performing well and were of declining value and, as a result, Blackstone’s equity investment was impaired and the Company would not generate anticipated performance fees on those investments or would have fees “clawed-back” by limited partners in its funds.

On March 10, 2008, Blackstone issued a press release announcing its financial results for the full year of 2007 and the fourth quarter of 2007, the periods ending December 31, 2007. Among other disclosures, Blackstone announced that it was writing down its investment in Financial Guaranty Insurance Company by $122 million. As of April 15, 2008, Blackstone common stock traded in a range of $17-$17.50 per share, approximately 45% below the IPO price of $31.00 per share.

On September 22, 2009, an Opinion And Order on the Motion to Dismiss Plaintiffs' Consolidated Amended Class Action Complaint was granted. The rationale was based on the plaintiff electing to stand on it pleadings rather than to amend it in the face of Defendant's motion to dismiss as allowed by Individual Practices, Plaintiff's claims are dismissed with prejudice.

According to an order dated February 10, 2011, the United States Court Of Appeals for The Second Circuit held that the District Court erred in dismissing for failure to state a claim plaintiffs’ complaint brought pursuant to Sections 11, 12(a)(2), and 15 of the Securities Act. This holding vacated the District Court’s judgment and remanded the case for further proceedings.

On According to a Mandate issued on April 08, 2011, the judgment of the district court was Vacated and the case was Remanded for further proceedings in accordance with the opinion of the United States Court Of Appeals for the Second Circuit.

INDUSTRY CLASSIFICATION:
SIC Code: 6282
Sector: Financial
Industry: Investment Services

COMPANY/ISSUER NAME:	The Blackstone Group L.P.
COMPANY/ISSUER TICKER:	BX
COMPANY WEBSITE:	http://www.blackstone.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Landmen Partners Inc., et al. v. The Blackstone Group L.P., et al.

COURT: S.D. New York	DOCKET NUMBER: 08-CV-03601
JUDGE NAME: Hon. Colleen McMahon
DATE FILED: 04/15/2008	SOURCE: Notice of Filing
CLASS PERIOD START: 06/25/2007	CLASS PERIOD END: 03/10/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Abraham, Fruchter & Twersky (New York, 42 Street) 60 East 42 Street, New York, NY, 10021 (voice) 212.687.6655, (fax) , Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, info@csgrr.com/ _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violation of Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 4/15/2008
US District Court Civil Docket
Type: Docket		Date on the document: 4/25/2008

REFERENCE COMPLAINT

Landmen Partners Inc., et al. v. The Blackstone Group L.P., et al.

COURT: S.D. New York	DOCKET NUMBER: 08-CV-03601
JUDGE NAME:
DATE FILED: 10/27/2008	SOURCE: Docket
CLASS PERIOD START: 06/25/2007	CLASS PERIOD END: 03/10/2008
TYPE OF COMPLAINT: First Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Brower Piven (New York) 488 Madison Avenue. Eighth Floor, New York, NY, 10022 (voice) 212.501.9000, (fax) 212.501.0300, info@browerpiven.com Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, info@csgrr.com/ _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Amended Class Action Complaint For Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 10/27/2008
Opinion & Order
Type: Order		Date on the document: 09/22/2009
Opinion & Order
Type: Order		Date on the document: 09/22/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 09/22/2009
Notice Of Appeal
Type: Notice of Appeal		Date on the document: 10/23/2009
U.S. District Court Civil Docket
Type: Docket		Date on the document: 04/11/2010
Order
Type: Order		Date on the document: 02/10/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 02/10/2011
U.S. District Court Civil Docket
Type: Other		Date on the document: 07/05/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/20/2011

OTHER DOCUMENTS
Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded
Case Name and/or Number: Timothy McAdam, et al. v. The Blackstone Group L.P., et al.
Type: Complaint		Date on the document: 4/23/2008
Class Action Complaint For Violations Of Federal Securities Laws Jury Trial Demanded
Case Name and/or Number: David B. Galchutt, et al. v. The Blackstone Group L.P., et al.
Type: Complaint		Date on the document: 5/1/2008
Class Action Complaint For Violations Of The Federal Securities Laws
Case Name and/or Number: Rettino Insurance Agency, et al. v. The Blackstone Group L.P., et al.
Type: Complaint		Date on the document: 6/16/2008
Mandate
Case Name and/or Number: Landmen Partners Inc., et al. v. The Blackstone Group L.P., et al.
Type: Other		Date on the document: 04/11/2011

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