Morgans Hotel Director Sues To Block Yucaipa Deal

Law360, Wilmington (April 3, 2013, 11:06 PM EDT) -- A Morgans Hotel Group Co. director launched a derivative suit Monday seeking to block a recapitalization plan that would increase private equity firm Yucaipa Cos. LLC's stake in the hotel operator, claiming his fellow board members improperly rushed the deal through for self-interested reasons.

Director Jason Taubman Kalisman claims the seven other Morgans board members — including Yucaipa founder and managing director Ronald W. Burkle — revived a stalled deal with the PE firm and then hastily rubber-stamped it only after OTK Associates LLC, the company's...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.