General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAnyone read this story about Bain Capital?
A class action lawsuit was filed against Bain alleging they participated in a "bidding club" where private equity firms colluded to withhold bidding on companies they sought to buy out so as to lower the price by eliminating competition. If true, this is not only a tort but a criminal conspiracy in violation of anti-trust laws. Last week the judge made the complaint public that had previously been heavily redacted by Bain lawyers. The alleged activity began in 2003, one year after Romneys name no longer appeared on Bain documents, but discovery is ongoing. If the Justice Dept. gets involved, people might be going away for a long time. E-mails obtained through discovery from Bain and others supposedly make a strong case for collusion.
http://www.businessweek.com/news/2012-10-10/investors-claim-kkr-told-equity-firms-not-to-bid-for-hca
Blackstone, KKR, Bain Are Accused of Rigging Bids
By Don Jeffrey and Devin Banerjee on October 11, 2012
"...Top executives at buyout firms including Blackstone Group LP (BX), KKR & Co. (KKR), Bain Capital Partners LLC and Carlyle Group (CG) LP assured each other in e-mails that they wouldnt compete on deals to avoid driving up prices and angering competitors, according to a now public court complaint.
The correspondence was cited as evidence that the firms rigged bids in 19 leveraged buyouts and eight other transactions, including the biggest deals of the leveraged buyout boom, according to the amended complaint unsealed yesterday by a federal judge in Boston. ..."
Maybe they can't tie Romney directly to this criminal activity, but if the allegations are true, it looks like most of his fortune is based on dirty money.
Here's a copy of the complaint, made public for the first time last week.
http://www.scribd.com/doc/109656055/5th-Amended-Complaint-Kirk-Dahl-v-Bain-Capital-Partners
renate
(13,776 posts)Color me intrigued. I think this is going to be an interesting month...
silverweb
(16,402 posts)[font color="navy" face="Verdana"]Verrrrry interesting. Can't wait to see how this unfolds explodes.
Romney's involvement noninvolvement will, I'm sure, be as solid as Cheney's involvement noninvolvement with Halliburton.
Astazia
(262 posts)Redaction line through a word is new to this old broad...so how food you do it?
K&R on collusion post re: Rmoney & Bain. They really are pond scum including Princess Ann.
~*~*~*old joke alert*~*~*~
What's the difference between a giant grouper & Mitt Rmoney?
(a) one is a slimy scum sucking, bottom feeder & the other is a fish.
[font color="navy" face="Verdana"]Type the word "strike" inside brackets like those used to bold or underline; then add the usual slash mark to stop the "strike" function at the end.
And thanks -- a good joke never gets old!
oldhippydude
(2,514 posts)tarheelsunc
(2,117 posts)Say what you want about business, but Bain doesn't create business, it destroys it. They don't care what they do, as long as they maximize their personal profits. I hope this company gets taken down.
dmr
(28,347 posts)all and any litigation out there for those with enough money.
Even if there were convictions, Romney's signature on a Pardon Letter is as good as gold.
No doubt all that money Sheldon Adelson has shoveled into this election is a down payment to the GOP. He's being investigated for violating the Foreign Corrupt Practices Act. How nice for him if he gets off or cleared on bribery crimes because of his bribing donating to Romney.
I bet Romney's got plenty of paybacks on the back burner.
There's a helluva lot of dark money out there, and it scares the hell out of me.
Oilwellian
(12,647 posts)During the Republican primary, he financed this video for Gingrich, to use against Romney.
dmr
(28,347 posts)I just watched it, and it's damaging.
Adelson has spent an enormous amount of money. First to Newt and now to Mitt - crazy for anyone to support either of those guys, but it just goes to show it's all about the payback.
Dark money owns Mitt, and it's bamboozling Americans with their propaganda. We will suffer dearly for it.
Again, thanks for the link, don't know how I missed it before.
HankyDub
(246 posts)just once, that's all it would take.
AllyCat
(16,187 posts)That would make lots of this stuff make some semblance of illegal sense.
Rincewind
(1,203 posts)the Mafia has a code of honor.
SleeplessinSoCal
(9,120 posts)Oilwellian
(12,647 posts)The Carlisle Group is a defendant in this lawsuit.
SleeplessinSoCal
(9,120 posts)defacto7
(13,485 posts)hootinholler
(26,449 posts)There could be RICO charges filed as well if the DOJ wanted to push this. I wonder if the Carlyle Group was in on it.
jsmirman
(4,507 posts)Oilwellian
(12,647 posts)One of the defendants listed in the PDF.
hootinholler
(26,449 posts)For some reason, charges seem to evaporate when the Bushes are implicated.
DiverDave
(4,886 posts)madoff stole from the rich, so thats why he went to jail.
If he would have stole from the poor, he would have been Inc.s man of the year.
reusrename
(1,716 posts)Citizens United v. Federal Election Commission, 558 U.S. 310 (2010)
Response to aint_no_life_nowhere (Original post)
DiverDave This message was self-deleted by its author.
ThomThom
(1,486 posts)forcing stock holders to sell is just wrong and making the company pay the note is nonsense
aint_no_life_nowhere
(21,925 posts)WillyT
(72,631 posts)TexasBushwhacker
(20,190 posts)onethatcares
(16,168 posts)Wasn't there some guy that received a $300,000,000.00 buy out from that firm as they were
undergoing investigation for the largest Medicaid/Medicare fraud in the country? I think his name
was PrickScott, asshole governor of Florida.
I wonder what his part in that was?
aint_no_life_nowhere
(21,925 posts)"...An alleged bid-rigging conspiracy among Bain Capital and other private equity firms to divvy up targeted companies including Nashville-based HCA may have taken as much as $1.6 billion out of HCA shareholders pockets by blocking rival bidders and keeping a lid on the final price when the hospital chain was sold in 2006. ..."
This is potentially a very big story, said Randall Thomas, a professor at the Vanderbilt University Law School. Its all coming out slowly. Well see how it evolves. Its lot more than just HCA.
aint_no_life_nowhere
(21,925 posts)I can't believe this hasn't been extensively reviewed on progressive websites.