In October 2006, the Department of Justice began an investigation into so-called 'club deals' between private equity houses, focusing on the extent to which joint-bidding arrangements between private equity companies could have the effect of limiting competition in the acquisition of businesses and assets, with the consequence that vendors would receive lower prices. In November 2006, LA Murphy v KKR et al, a class action case brought on behalf of vendor shareholders, was filed in the Southern District Court of New York.1 The putative plaintiff class alleged that private equity firms had conspired to bid jointly and to agree not to bid against each other and otherwise allocate bids among themselves. The case was voluntarily dismissed by the plaintiff in June 2007 (following the Supreme Court decision in Bell Atlantic Corp v Twombly, which clarified the pleading requirements for an antitrust conspiracy claim under the Sherman Act 1890).
展开▼
