10/09/2012 08:33 am ET Updated Dec 09, 2012

Private Equity Firms Allegedly Doomed Mervyn's To Failure

The private-equity firms behind the disastrous leveraged buyout of Mervyn's will cough up $166 million to settle allegations that they doomed the department store chain to failure.

Sun Capital Partners and Cerberus Capital, along with other defendants, were sued in 2008, when the 59-yearold company was forced to liquidate after a failed turnaround effort.

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