An attorney and a law firm jointly announced the investigation of a merger between two financial institutions, after shareholders of one noted there may be issues with the transaction. Depending on the investigation's outcome, there may be a securities class action lawsuit in the future.
Law office Powers Taylor, LLP, along with attorney Willie Briscoe, noted they began looking into shareholders' claims that the board of directors at VantageSouth Bancshares, Inc., were not looking out for their best interest when the company agreed to a merger with Yadkin Financial Corporation.
The deal would have Yadkin Financial pay $299 million in order to complete the merger, though shareholders of VantageSouth will earn just 0.3125 shares of Yadkin Financial stock for each stock they initially held.
With this in mind, there may be issues that the board of directors at VantageSouth is not looking out for its shareholders. The review process for the pending transaction may also have been inadequate, while the pricing proposal level may have been too low.
One day previous to the company's buyout, VantageSouth's shares had a value of $5.40 when comparing the closing price from Yadkin Financial. This level was notably lower than the yearly high. An analyst added that VantageSouth may be worth closer to $6.50 per share.
Any shareholders who want to seek more information about the investigation and any potential further action should speak with the law office. It is possible to contact them at no extra fee by email or telephone. Additionally, Briscoe is also able to field questions by email or telephone.
Second investigation begins
Another law office noted its intention to investigate the aforementioned transaction, as shareholders may not be happy with the situation. Like the other process, this investigation may also become a class action claim.
Law firm Faruqi and Faruqi, LLP, noted it is also looking into claims from shareholders. The purchase may have resulted in the VantageSouth's board of directors breaching fiduciary duties, due to many issues related to the sale and purchase price. That valuation may continue to fluctuate as the Yadkin Financial stock rises and falls.
Any shareholders who are looking to learn more about this action can speak with the law firm. Specifically, Juan Monteverde is available to field questions, and it is possible to reach him by telephone or email. The law firm's website also provides further information.