ASB Bancorp, Bd. of Directors Hit with Securities Class Action

New to ClassAction.org? Read our Newswire Disclaimer

A North Carolina man has filed a proposed class action against ASB Bancorp., Inc. and its board of directors on behalf of the company’s public stockholders stemming from a proposed merger with First Bancorp valued at roughly $175 million. The case alleges the Registration Statement submitted by the defendants and First Bancorp to the US Securities and Exchange Commission (SEC) unlawfully left out material information, including:

• ASB Bancorp’s financial projects and analyses as backed by its financial advisor firm, Keefe, Bruyette & Woods, Inc.;
• The valuation analyses prepared by Keefe, Bruyette & Woods, Inc. in connection to its fairness opinion of merger;
• The background process leading up to the proposed merger; and
• Any potential Keefe, Bruyette & Woods, Inc. conflicts of interest.

“In short, unless remedied, [ASB Bancorp’s] public stockholders will be forced to make a voting decision on the proposed transaction without full disclosure of all material information concerning the proposed transaction being provided to them,” the lawsuit argues.