Class Action Filed Over Proposed IberiaBank, First Horizon Merger

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A proposed class action lawsuit out of Delaware federal court takes issue with a proposed merger between IberiaBank Corporation and First Horizon National Corporation. Filed against the two banks and IberiaBank’s board of directors, the 14-page suit claims the registration statement filed with the SEC in connection with the proposed transaction omitted material information.

The plaintiff in the case alleges the defendants failed to disclose to stockholders in a December 2019 statement certain details regarding:

• IberiaBank and First Horizon’s financial projections;
• The valuation analyses performed by financial advisors Keefe, Bruyette & Woods, Inc. and Goldman Sachs & Co. LLC; and
• Potential conflicts of interest of KBW and Goldman Sachs, including the nature and timing of past services performed for the defendants by the firms and the amount of compensation received for such services.

According to the lawsuit, if the aforementioned information were properly disclosed, it would have “significantly alter[ed] the total mix of information” available to IberiaBank’s stockholders, who are set to vote on the merger.