Investor Backs Morgans Director In Yucaipa Challenge

Law360, New York (April 5, 2013, 2:24 PM EDT) -- OTK Associates LLC, the largest shareholder of Morgans Hotel Group Co., on Thursday joined a lawsuit filed by its representative director on Morgans' board, seeking to block a debt-for-equity swap that would increase activist Ron Burkle's sway over the company.

OTK wants to intervene in the case, in which Jason Taubman Kalisman claims he was cut out of special committee meetings where other Morgans directors approved a deal to sell a Las Vegas property manager and a Miami hotel to Burkle's Yucaipa Cos. in exchange for...
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