Capital Bank Financial Corp. Faces Another Lawsuit Over Proposed Merger

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Capital Bank Financial Corp. and its board of directors are facing a proposed class action lawsuit for allegedly omitting information from a registration statement issued in connection with a merger between Capital Bank and First Horizon National Corporation. The plaintiff – a Capital Bank shareholder – argues that the statement fails to supply information concerning the company’s financial projections, valuation analyses used to assess the deal’s fairness, and potential conflicts of interest among Capital Bank executives and their financial advisor. The suit also claims that the defendants failed to disclose the full background of the transaction, including details concerning other potential buyers.

“Without this information,” the plaintiff says, “Capital Bank stockholders have no ability to understand whether Capital Bank management, directors, or advisors faced potential conflicts causing them to favor a transaction with First Horizon over other potential strategic alternatives.”