A law firm is investigating a bank's acquisition by another financial institution after shareholders alleged that fiduciary duty was breached and other laws were violated. Depending on the outcome of this process, it is possible that this will become a securities class action lawsuit.
Law office Levi and Korsinsky started looking into the board of directors at Centrix Bank and Trust, after it agreed for the company to be purchased by Eastern Bank Corporation. Shareholders would earn $41 in cash for each share of Centrix common stock, due to the pending deal.
However, the amount of money agreed to in the deal may not be enough for shareholders. This may have breached fiduciary duties by not prolonging the sales process to get a better deal, as well as acting too quickly to close this transaction. Another issue was that Eastern Bank Corporation may be paying too little for the deal. Multiple state law violations also may have occurred.
Any shareholders who are looking to learn more about the investigation can contact the law firm at no cost. Joseph Levi is the best person to speak with, and he can be reached by telephone or email. There is also further information available on the law office's website.
Second investigation begins
Another litigation firm recently announced that it will seek answers to shareholders' questions regarding the pending deal between Centrix and Eastern Bank. Like the aforementioned investigation this also may become a class action claim in the future.
Law firm Pomerantz, LLP, noted it is investigating the deal on behalf of stockholders. The deal will give shareholders $41 per share if it passes, but this figure may not be high enough because there was potentially an opportunity to maximize shareholder value that the company allegedly did not take advantage of, hence the accusations of fiduciary duty breaches. The Centrix stock level was higher than the actual offer price when the deal was met, while the price to net income level is also lower than many similar transactions. The company will also keep Centrix's president when the merger is completed.
It is also possible to speak with this firm in order to gain more information about the process, as well as how the deal and other aspects may affect shareholders. Firm member Robert Willoughby is available to discuss these matters, and he can be reached by telephone or email.