SAN DIEGO, June 23, 2016 /PRNewswire/ -- Shareholder rights law firm Johnson & Weaver, LLP has launched an investigation into whether the board members of Morgans Hotel Group Co. (NASDAQ: MHGC) breached their fiduciary duties in connection with the proposed sale of the Company to SBE.

Johnson & Weaver LLP (PRNewsFoto/Johnson & Weaver LLP)

Additional Information:
Morgans Hotel owns, develops, operates and licenses boutique hotels.

On May 9, 2016, Morgans Hotel announced it had signed a definitive merger agreement with SBE. Under the terms of the agreement, Morgans Hotel stockholders will receive $2.25 per share in cash.

The investigation concerns whether the Morgans Hotel board failed to satisfy their duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Morgans Hotel shares of common stock. Nationally recognized Johnson & Weaver is investigating whether the proposed deal price represents adequate consideration. The 52-week high for Morgans Hotel stock is $7.00.

If you are a shareholder of Morgans Hotel  and believe the proposed buyout price is too low or you're interested in learning more about the investigation or your legal rights and remedies, please contact lead analyst Jim Baker (jimb@johnsonandweaver.com) at 619-814-4471. If emailing, please include a phone number where you can be reached.

About Johnson & Weaver, LLP:
Johnson & Weaver, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit http://www.johnsonandweaver.com. Attorney advertising. Past results do not guarantee future outcomes.

Contact:
Johnson & Weaver, LLP
Jim Baker, 619-814-4471
jimb@johnsonandweaver.com

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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/morgans-hotel-mhgc-alert-johnson--weaver-llp-launches-an-investigation-into-the-fairness-of-price-and-process-in-proposed-sale-of-morgans-hotel-group-co-are-shareholders-getting-a-fair-price-300289270.html

SOURCE Johnson & Weaver, LLP

Copyright 2016 PR Newswire

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