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On September 22, 2009, the Honorable Judge Harold Baer of the Southern District of New York dismissed with prejudice a putative class action suit alleging securities law violations filed against Simpson Thacher client The Blackstone Group L.P. The case arose out of Blackstone's June 2007 initial public offering.  The complaint alleged that Blackstone's IPO Registration Statement and Prospectus failed to disclose that certain portfolio companies held by Blackstone-sponsored funds were "performing poorly" at the time of the IPO, and also failed to disclose economic trends that would negatively affect Blackstone's real estate investments, in violation of Sections 11 and 15 of the Securities Act of 1933.  Also named in the suit were several senior Blackstone officers.

Oral argument was held in May 2009.  The September 22 decision dismissed the complaint notwithstanding what it described as the "minimal burden" Section 11 places on Plaintiffs at the pleading stage.  The Court ruled that the alleged omissions were quantitatively and qualitatively immaterial as a matter of law given the size of the investments at issue relative to Blackstone as a whole, and given Blackstone's structure as an asset manager and financial advisory firm. 

The litigation team representing Blackstone included Bruce D. Angiolillo, Jonathan K. Youngwood, Paul J. Sirkis, Alex Simkin, and Daniel J. Stujenske.