US Second Circuit Restores Securities Class Action Against Global Asset Manager
18 March 2011
Mayer Brown Legal Update
Plaintiffs brought a putative securities class action on behalf of investors who purchased the common units of the Blackstone Group, LP (Blackstone) at the time of its initial public offering (IPO) on June 21, 2007. Plaintiffs alleged that Blackstone, and certain of its officers, failed to disclose facts relating to Blackstone’s substantial investment in a monoline insurer that insured collateralized debt obligations (CDOs) backed by subprime mortgages to higher-risk borrowers, and residential mortgage backed securities (RMBS) linked to nonprime and subprime mortgages.