Suspicious Stockholder Sues HCSB, United Bank Over Proposed Merger

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HCSB Financial Corporation, its board of directors, and United Community Banks, Inc. have been hit with a securities lawsuit filed by a stockholder who claims the companies released misleading and incomplete information regarding a proposed merger between HCSB and United. The plaintiff claims the proposed agreement seriously undervalues the company and robs stockholders of its future success. He argues that the registration statement omits important information regarding the board’s potential conflicts of interest, the figures used by HCSB’s financial advisor to determine the fairness of the deal, and data regarding United’s financial projections. The suit argues that without this information, shareholders are unable to determine whether the deal is favorable to them.