HARTFORD, Conn., April 16, 2008 (Lawfuel) — The law firm of
Schatz Nobel Izard P.C., which has significant experience representing
investors in prosecuting claims of securities fraud, announces that a
lawsuit seeking class action status has been filed in the United States
District Court for the Southern District of New York on behalf of all
persons who purchased the common stock of The Blackstone Group L.P.
(“Blackstone” or the “Company”) (NYSE:BX) pursuant and/or traceable to
the Company’s initial public offering on or about June 25, 2007 (the
“IPO” or the “Offering”).
The Complaint charges that Blackstone and certain of its officers and
directors violated federal securities laws. 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.
If you are a member of the class, you may, no later than June 16, 2008,
request that the Court appoint you as lead plaintiff of the class. A
lead plaintiff is a class member that acts on behalf of other class
members in directing the litigation. Although your ability to share in
any recovery is not affected by the decision whether or not to seek
appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members.
While Schatz Nobel Izard P.C. has not filed a lawsuit against the
Defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at [email protected], or visit our website:
CONTACT: Schatz Nobel Izard P.C.
Wayne T. Boulton
Nancy A. Kulesa