Carlyle backs off arbitration provision

Carlyle has apparently backed off including a controversial arbitration provision as part of its IPO that would have prevented unitholder class actions. According to Bloomberg:

“After consultations with the SEC, Carlyle investors and other interested parties, we have decided to withdraw the proposed arbitration provision,” Christopher Ullman, a Carlyle spokesman, said today in an e-mailed statement. “We first offered the provision because we believed that arbitrating claims would be more efficient, cost effective and beneficial to our unitholders.”

Steven Davidoff didn't think the SEC would ever let Carlyle go public with the arbitration provision intact.  Looks like he was rigtht.

-bjmq