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People’s United Bank and Connecticut-based United Bank have moved closer to a proposed merger, but not without several legal complaints looking to delay the transaction.
People’s United Bank has received the regulatory approvals and waivers needed to complete the merger with Hartford-based United Bank, according to an SEC filing by United Financial Bancorp, the holding company of United Bank. A special meeting for United Financial’s shareholders to vote on the merger is scheduled for Oct. 22. If shareholders approve the transaction, the merger is expected to take place on Nov. 1.
In another SEC filing, United Financial stated that six complaints related to the merger have been made in Connecticut, Delaware and New York courts. Among those filing complaints are William McGurk, a shareholder in both banks and former president and CEO of United predecessor Rockville Bank, and serial lawsuit-filer and shareholder Paul Parshall, who also filed a complaint against the Savings Institute and Berkshire Bank merger.
The complaints allege that People’s United and United Financial violated federal and state law by making “materially incomplete and misleading” statements in filings related to the merger, according to United Financial’s SEC filing. Among other actions, the complaints look to delay the Oct. 22 meeting unless shareholders receive missing information, and some also seek monetary damages.
“United Financial believes that no additional disclosure is required to supplement the Definitive Proxy Statement under applicable laws, and that no laws or duties were breached in connection with the merger or the Definitive Proxy Statement,” the bank said in the filing. “However, to minimize the costs, risks and uncertainties inherent in litigation and to avoid any potential delay of the consummation of the Merger, and without admitting any liability or wrongdoing, United Financial decided to make certain supplemental disclosures to the Definitive Proxy Statement.”
Included in the filing is more detail about the background of the merger and the opinion of United’s financial adviser.
