Civil Suit Accuses 13 Buyout Firms of Antitrust Violations

Three investors filed a class-action lawsuit Wednesday against some of the biggest buyout funds in the United States, accusing the firms of colluding to take companies private at below-value prices. The suit, which was filed in federal court in Manhattan, follows a similar Justice Department investigation into the practice in question, known as the club deal.
The suit is the first civil action taken against the buyout funds, several of which already have received letters from the Justice Department regarding potentially anticompetitive behavior. At the heart of both suits seem to be club deals, when private-equity firms form consortiums to collectively bid on a target.