SOURCE: Stull, Stull & Brody

April 30, 2008 19:35 ET

Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of The Blackstone Group L.P.

NEW YORK, NY--(Marketwire - April 30, 2008) - Stull, Stull & Brody has filed a class action suit in the United States District Court for the Southern District of New York on behalf of purchasers of 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").

If you purchased Blackstone common stock pursuant and/or traceable to the IPO, you may move the Court to serve as lead plaintiff in the action by no later than June 16, 2008. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.

The complaint alleges that Blackstone and certain of its officers and directors violated Sections 11 and 15 of the Securities Act of 1933 by issuing a materially inaccurate Registration Statement and Prospectus (collectively the "Registration Statement") in connection with the Company's IPO. The complaint alleges that the Company's Registration Statement was materially false because it 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 fourth quarter and full year 2007, the periods ending December 31, 2007. Among other disclosures, the Company announced that it was writing down its investment in Financial Guaranty Insurance Company by $122 million.

In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody, by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, or by fax to 1-212-490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Contact Information

  • Contact:
    Tzivia Brody, Esq.
    Stull, Stull & Brody
    Email Contact
    1-800-337-4983