OTK Associates LLC, the largest shareholder of Morgans Hotel Group Co. is taking its dispute with the company to court. Bloomberg reported that OTK Associates LLC filed a petition for an injunction in a Delaware court alleging that Morgans Hotel Group Co., New York City, gave inadequate notice of its March 30 directors’ committee meeting. Meanwhile Jason Kalisman,
a founding member of OTK Associates,
has filed a lawsuit against Morgans Hotel Group Co. seeking to invalidate the deal to sell its stakes in the 195-room Delano South Beach and The Light Group to The Yucaipa Companies. The agreement includes selling its stakes in the 195-room Delano South Beach, located in Miami Beach, and The Light Group and launching a US$100 million rights offering in a deal to reduce its debt and preferred stock obligations by US$230 million.