Silver Lake Partners to Pay $29.5 Million to Settle LBO Suit

Silver Lake Partners agreed to pay $29.5 million to settle an antitrust lawsuit alleging it conspired to limit competition in the leveraged buyout boom that preceded the financial crisis, according to a filing yesterday in Boston federal court.

Silver Lake’s settlement, combined with others, will provide about $150 million to investors who had been cheated as a result of the suppressed competition. It’s “well within the range of fairness, adequacy and reasonableness” for such agreements, plaintiffs’ lawyer David Mitchell said in court papers.

In earlier pacts, Goldman Sachs Group Inc. (GS) said it would pay $67 million and Bain Capital Partners LLC would pay $54 million, subject to approval by U.S. District Judge William G. Young. Shareholders of companies that were acquired accused Goldman Sachs, Bain and banks and private-equity firms of conspiring to carve up the market for large leveraged buyouts, suppressing prices and depriving investors of billions of dollars.

Silver Lake is a private equity firm that specializes in buyouts in the technology sector.

“While we continue to believe that the plaintiffs’ claims about Silver Lake are baseless and without merit, we concluded that it was in the best interests of our limited partners to put this matter behind us and end over six years of litigation, expense and distraction,” Gemma Hart of Brunswick Group LLC in New York said on behalf of Silver Lake.

The case is Dahl v. Bain Capital Partners LLC, 07-cv-12388, U.S. District Court, District of Massachusetts (Boston).

To contact the reporter on this story: Phil Milford in Wilmington, Delaware at pmilford@bloomberg.net

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net Joe Schneider, Charles Carter

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