Goldman-Linked $4 Billion Buyout Suit Continues: Delaware Brief

Goldman-Linked $4B Buyout Suit Continues

Photographer: Michael M. Santiago/Getty Images

Goldman Sachs and General Atlantic lost their bid to exit litigation over the $4 billion sale of EngageSmart, then a General Atlantic portfolio business, to Vista Equity Partners Management, Mike Leonard reports.

A Delaware Chancery Court judge let the case move forward Feb. 27, saying it’s conceivable Goldman helped deal insiders cover up a secret $500 million dividend to General Atlantic that siphoned value from public shareholders. The allegations, if true, show the private equity firm was motivated to maximize its total haul in the transaction, even if that meant driving down the headline ...