This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Shareholder Sues Dissident Nominees To Morgans Hotel Group Board And Morgans Shareholder OTK Associates

LOS ANGELES, July 1, 2013 /PRNewswire/ -- Ron Burkle today filed suit against the dissident nominees to the board of directors of Morgans Hotel Group Co. (NASDAQ: MHGC) put forward by OTK Associates, a Morgans shareholder, and against OTK.  Burkle owns The Yucaipa Companies, an investment firm that is the largest stakeholder in Morgans. 

Today's complaint, filed in federal court in the Southern District of New York, alleges that the defendants engaged in federal proxy rule violations during the recent contest for control of the Morgans board.  In particular, the defendants are accused of making materially false and misleading statements and omissions in describing the recommendations of the country's two leading proxy advisory firms, Glass Lewis & Co. and Institutional Shareholder Services Inc., which led to a tainted election.  The complaint seeks a new election for the Morgans board of directors.

Last week Yucaipa sued Morgans in New York state court for Morgans' breach of its agreements with Yucaipa.  Yucaipa is the largest stakeholder in Morgans, through ownership of all of the Company's outstanding preferred stock, over 50% of its convertible notes, and warrants for 12.5 million shares of common stock.  Burkle personally owns common stock of Morgans.

About The Yucaipa Companies The Yucaipa Companies is a premier investment firm that has established a record of fostering economic value through the growth and responsible development of companies.  As an investor, Yucaipa works with management to strategically reposition businesses and implement operational improvements, resulting in value creation for stakeholders, customer and employees.  Since its founding in 1986, the firm has completed mergers and acquisitions valued at more than $35 billion.  For more information visit www.yucaipaco.com

SOURCE The Yucaipa Companies

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,059.18 -11.22 -0.06%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs