Blackstone, Goldman, KKR, Zimmer Board Dodge Investor Lawsuit

Affiliates of Blackstone Group LP, Goldman Sachs Group Inc., KKR & Co., and TPG Global LLC escaped insider trading claims in Delaware over their mass sales of Zimmer Biomet Holdings Inc. shares shortly before regulatory woes sent the stock price plunging.

Vice Chancellor Lori W. Will dismissed the case late Wednesday from Delaware’s Chancery Court, saying the pension fund leading the lawsuit failed to demand an internal investigation before suing or show that Zimmer’s board was too compromised by its own legal exposure to conduct a probe fairly.

The lawsuit didn’t “support a reasonable inference that the ...