Blackstone to pay $85 mln to settle lawsuit over IPO

NEW YORK Wed Aug 28, 2013 7:26pm EDT

NEW YORK Aug 28 (Reuters) - Blackstone Group LP 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 Sept. 16. The proposed deal requires judicial approval.