NEW CASES

Company: The Blackstone Group, LP (NYSE:BX)

On or about June 21, 2007, Blackstone Group LP (“Blackstone” of the “Company”) filed with the SEC a Form S-1/A Registration Statement (the "Registration Statement"), for its Initial Public Offering (“IPO”). On or about June 25, 2007, the Prospectus (the “Prospectus”) with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 133 million shares of Blackstone’s common stock were sold to the public at $31 per share, thereby raising more than $4 billion.

On March 10, 2008, Blackstone issued a press release announcing its financial results for the full year of 2007 and the fourth quarter of 2007, the periods ending December 31, 2007. Among other disclosures, Blackstone announced that it was writing down its investment in Financial Guaranty Insurance Company by $122 million. As of April 15, 2008, Blackstone common stock traded in a range of $17.50 per share, approximately 45% below the IPO price of $31.00 per share.

The Registration Statement failed to disclose that certain of the Company's portfolio companies were not performing well and were of declining value and, as a result, Blackstone's equity investment was impaired and the Company would not generate anticipated performance fees on those investments or would have fees "clawed-back" by limited partners in its funds.

Class Period:  All persons who purchased or otherwise acquired the common stock of Blackstone pursuant or traceable to the Company's June 25, 2007 IPO.

Please contact us if you would like to discuss our investigation.

Nancy Kaboolian
Partner
P: 212.889.3700
E: nkaboolian@abbeyspanier.com