Morgans Settles Yucaipa, OTK Securities Litigation

Law360, New York (March 3, 2014, 8:04 PM EST) -- Morgans Hotel Group Co. has agreed to settle a web of securities litigation lodged by private equity firm Yucaipa Cos. LLC and shareholder OTK Associates LLC over an allegedly botched debt swap and other alleged fiduciary violations, the company said in a Monday regulatory filing.

The hotel giant struck a binding memorandum of understanding with Yucaipa and former Morgans director and Yucaipa founder Ronald W. Burkle on Feb. 28, which should settle for about $3 million the New York state court claims lodged against Morgans over...
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