Carlyle recruited the executive from the company it was trying to buy. The lawsuit:Carlyle, the buyout group, has been accused of inducing a senior businessman to purloin secret documents from one of France’s biggest industrial companies.
"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.
Update 6-16-20: Missoula's bad faith lawsuit against Carlyle has been delayed due to the coronavirus pandemic. The city's attorneys say they have evidence of Carlyle Grouo fraud and malice. If so, Carlyle will not want a public trial.
