Del. Loses Chance For Ruling On Directors' Derivative Rights

Law360, New York (April 17, 2013, 6:11 PM EDT) -- A hedge fund's intervention in an ongoing dispute related to a Morgans Hotel Group Co. recapitalization robs the Delaware bar of what could have been a bellwether case to determine whether a board member can sue his fellow directors on behalf of the company.

Jason Taubman Kalisman, a dissident, shareholder-appointed member of Morgans' board, sued the rest of the board earlier this month to block a recapitalization that would see Yucaipa Cos. gain control of certain Morgans hotel assets in exchange for wiping out $230 million...
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