Former Congressman Michael Huffington's payback for The Carlyle Group's losing his
$20 million investment continued today. His press release
stated:
Claims for unfair and deceptive acts and practices leveled against the
Carlyle Group, David Rubinstein, one of the Carlyle Group's founders,
T.C. Group, LLC and Carlyle Investment Management LLC, by former
Congressman Michael Huffington will be heard by a jury following a
ruling by a Delaware Superior Court.
The Court further stated that "it is for the jury to decide whether
Defendants engaged in an 'unfair or deceptive act or practice' by
(allegedly) failing to tell [Huffington] about the use or extent of
leverage" and the jury must also decide whether the overleveraging of
the Fund constitutes an unfair or deceptive act or practice under the
applicable law.
If Huffington is successful in his claims, the law allows him to seek up
to three times his damages as well as his attorneys' fees.
How much might this bad publicity will cost Carlyle in its IPO? If proceeds are more than $20 million below Carlyle's expected discount pricing, Rubenstein et al may wish they'd settled.
