Casino news source: Reuters - http://today.reuters.com
Morgan Stanley sued over Atlantic City casino site
Thu Feb 8, 2007 10:43pm ET
NEW YORK, Feb 8 (Reuters) - Morgan Stanley (MS.N: Quote, Profile , Research) has been sued by Resorts International Hotel Inc. for all profits from an Atlantic City, New Jersey, site purchased by the investment bank that is being developed as a casino, court papers show.
The lawsuit was filed last month in the U.S. district court in New Jersey.
In it, the casino operator accused Morgan Stanley of using Audrey Oswell, Resorts' chief executive from June 2004 to March 2006, to aid in its efforts to buy the 20-acre oceanfront site while she was chief executive, but without disclosing the matter to Resorts.
Morgan Stanley later acquired the site for $74 million, and is developing a $1 billion casino project there, the complaint said.
According to the court documents, Resorts said Morgan Stanley improperly benefited from Oswell's breach of her fiduciary duties.
It wants the investment bank to give up any gains from its purchase, plus punitive damages.
Morgan Stanley spokesman Mark Lake said the lawsuit is "without merit and we intend to defend ourselves vigorously."
Private equity firm Colony Capital LLC has a stake in Resorts International, which operates one Atlantic City casino.
Oswell could not immediately be reached for comment. |
|
World Casino Directory 
Gambling Forums 
