Resorts, Morgan Stanley settle lawsuit

ATLANTIC CITY, New Jersey -- As reported by the Press of Atlantic City: "Two combatants have settled their high-stakes courtroom drama involving allegations of double-dealing and corporate intrigue in a $2 billion casino project.

"Resorts International Hotel Inc. had sued Wall Street investment bank Morgan Stanley in January 2007, claiming it had improperly used a former Resorts Atlantic City executive to gain an inside track on the casino land.

"Representatives of Resorts and Morgan Stanley confirmed Monday that the U.S. District Court case was settled in December, although a confidentiality agreement bars them from divulging the terms.

"...The lawsuit claimed that Morgan Stanley had secretly worked with former Resorts President Audrey S. Oswell to acquire a 20-acre parcel along the Boardwalk in 2006 for $74 million. Since that time, Morgan Stanley has entered into a partnership with Revel Entertainment Group to develop the oceanfront property into a Las Vegas-style megacasino scheduled to open in late 2010.

"...In settling the case, Morgan Stanley most likely agreed to pay Resorts a sizable cash award, according to Charles A. Ercole, a Philadelphia attorney who represents Oswell..."