Blackstone to pay $85 million to settle lawsuit over IPO

Wed Aug 28, 2013 7:28pm EDT
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NEW YORK (Reuters) - Blackstone Group LP (BX.N: Quote) has agreed to pay $85 million to settle an investor class action lawsuit accusing the private equity giant of not disclosing bad investments before its $4.7 billion initial public offering in 2007.

The settlement, disclosed in court papers filed Wednesday in U.S. District Court in Manhattan, came in the run-up to a trial set to begin September 16. The proposed deal requires judicial approval.

(Reporting by Nate Raymond in New York; Editing by Gary Hill)