A law firm recently announced that it is looking into the merger of two financial institutions, after shareholders of one noted potential issues with the deal. It is possible this situation may become a securities class action claim.
Shareholders of Jefferson Bancshares, Inc., prompted law office Robbins Arroyo, LLP, to investigate the company's purchase by HomeTrust Bancshares, Inc. If approved, the deal would provide Jefferson Bancshares shareholders $4 in cash and $4 in HomeTrust stock for each share owned.
The agreed deal has a premium of less than 23 percent over the closing price that the company stock had on Jan. 22, 2014, which also happens to be significantly lower than the 54 percent average for similar purchases in the last three years. Additionally, recent financial performance of Jefferson Bancshares was positive.
The banking company released its financial information for the end of the third quarter of 2013 in late-October.
"We are encouraged by our results for the quarter ended September 30, 2013, which include positive net earnings, increases in capital and continued improvements in asset quality," said Anderson Smith, president and CEO of Jefferson Bancshares. "We have made significant progress in reducing our non-performing assets to $15.2 million at September 30, 2013 compared to $19.2 million at June 30, 2013 and $24.7 million at September 30, 2012. Delinquency levels have declined, with the 30-89 day category totaling $397,000 at September 30, 2013, compared to $4.1 million for the same period in 2012."
With this in mind, it has been claimed that the board of directors at Jefferson Bancshares was not looking out for the best interest of shareholders by making the deal.
It is possible for shareholders to speak with the law firm to learn more information about the investigation, as well as receive details about the potential for a class action claim. Contacting firm member Darnell Donahue is best, and he can be reached by telephone or email. There is also information available regarding the case on the law firm's website.
Second investigation underway
Another law office noted it will seek out information on this situation, in order to determine if shareholders' claims are accurate.
Rigrodsky and Long, P.A., explained that it also began an investigation of the Jefferson Bancshares board of directors, as they may have breached fiduciary duty, as well as other related law violations.
Shareholders are encouraged to speak with firm members Gina Serra or Seth Rigrodsky to gain more info. The best ways to contact them are by mail, email or telephone. It is also an option to visit the firm's website for more information.