Shareholders File Suit Against Capital Bank Over Merger Considerations

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A proposed class action lawsuit has been filed against Capital Bank Financial Corp. and its board of directors alleging that the defendants failed to disclose required information regarding a proposed merger between Capital Bank and First Horizon National Corporation. A Capital Bank stockholder is the plaintiff in the suit and alleges that the registration statement is missing information concerning the financial projections of both companies, the valuation analyses performed by Capital Bank’s financial advisor, and the background process of the transaction. According to the complaint, the defendants neglected to inform stockholders of any potential conflicts of interest among board members and the company’s financial advisor that would have caused them to favor First Horizon over other potential buyers. The plaintiff argues that shareholders require this missing information in order to determine whether the estimated $2.2 billion transaction is a fair deal to them.