Goldman, General Atlantic Ordered to Face $4 Billion Buyout Case

Goldman Sachs & Co. and General Atlantic LP lost their bid to exit litigation over the $4 billion sale of EngageSmart Inc., then a General Atlantic portfolio business, to Vista Equity Partners Management LLC.

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 per-share price, the ...