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...
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.