Sunday, July 29, 2018

Carlyle Group Sued Again

FT reported:

Carlyle, the buyout group, has been accused of inducing a senior businessman to purloin secret documents from one of France’s biggest industrial companies.
Carlyle recruited the executive from the company it was trying to buy.  The lawsuit:

"accuses him (executive Carlyle hired) of downloading “a trove of competitively sensitive information” on to two USB thumb drives before he left the building. Carlyle provided “a direct financial incentive” for him to breach his duties as an employee."
It took years but Carlyle lost the condemnation lawsuit over Mountain Water.   Now the City of Missoula wants Carlyle to pay for its PEU practices:

An alleged betrayal included Carlyle infrastructure executives getting incentives to maximize the water company’s short-term profit at the expense of the city of Missoula, and to extract $11 million for shareholders by maximizing rates and minimizing maintenance.
In all, Schneider laid out a laundry list of facts produced in two trials that showed bad faith including false promises, unjust enrichment, deceit, corporate raiding and what he termed legal thuggery.
Carlyle provided incentives that caused its representatives to act in unethical ways.  It happened before with Synagro, Semgroup, Church Street Health Management, ARINC, China Fishery and Cobalt Energy. 

Yet, Carlyle's co-founders meet regularly with U.S. Presidents regardless of political party.  Greed lives and unfortunately it has bipartisan support.