Yucaipa Sues Morgans Over $75M Deal In Proxy Fight Fallout

Law360, New York (October 7, 2013, 8:31 PM EDT) -- The Yucaipa Companies LLC, the private equity firm founded by billionaire Ron Burkle, filed suit in New York state court on Friday alleging Morgans Hotel Group Co. reneged on the terms of a $75 million investment agreement following a nasty proxy battle.

Yucaipa American Alliance Fund II LP and Yucaipa American Alliance (Parallel) Fund II LP accused Morgans of violating the terms of an October 2009 stock purchase agreement. Under that deal, Yucaipa purchased 75,000 shares of Morgan securities, along with warrants to buy 12.5 million...
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