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Investors Sue Resorts International: An investment firm...

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Investors Sue Resorts International: An investment firm wants Merv Griffin to repurchase $325 million in notes used to buy Resorts International Inc., claiming that the entertainer misrepresented the company’s financial condition. Peter Stuyvesant Ltd. is alleging that Griffin, Resorts, the investment firm of Drexel Burnham Lambert Inc., some top officers of Griffin’s company and other defendants tried to “inflate the publicly reported assets, earnings and net worth of Resorts.” The allegations were made in a class-action suit filed April 19 in U.S. District Court in New Jersey. Christopher Whitney, Resorts’ chief of staff, said he had not yet seen the lawsuit and could not comment.

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