Morgans Director Wins Injunction To Halt Yucaipa Deal

Law360, Wilmington (May 14, 2013, 9:31 PM EDT) -- A Delaware Chancery judge put Morgans Hotel Group Co.'s planned recapitalization on ice Tuesday, granting an injunction that prevents the hotel operator from moving forward immediately on its deal with private equity firm Yucaipa Cos. LLC and imposes a time frame for the shareholder vote on a possible board shakeup.

The injunction is a victory for dissident director Jason Taubman Kalisman — representing OTK Associates LLC, Morgans' largest shareholder — who launched a derivative complaint April 1 accusing his fellow directors of manipulating the deal to...
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.