Stone Point Wins Antitrust Appeal Over Bankruptcy Fees (Correct)

April 13, 2021, 3:40 PM; Updated: April 14, 2021, 3:45 PM

Stone Point Capital LLC secured its victory Tuesday against allegations that it led a subsidiary’s scheme to gouge bankruptcy estates on support services, persuading a federal appeals court to uphold a decision throwing out the case.

The U.S. Court of Appeals for the Second Circuit declined to impose liability against the private equity firm over the alleged role played by Stretto—the former Bankruptcy Management Solutions Inc.—in colluding to alter the fee model of the bankruptcy services industry after the 2008 financial crisis.

The lawsuit, “devoted almost entirely to describing the conduct of BMS,” fails “to plausibly allege Stone Point’s participation...

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