Robbins Umeda LLP Is Investigating Tower Bancorp, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of Tower Bancorp, Inc. (NASDAQ: TOBC), the parent company of Graystone Tower Bank. The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Tower in connection with their efforts to sell the company to Susquehanna Bancshares, Inc. (NASDAQ: SUSQ).
On June 20 2011, Tower announced it had entered into a definitive merger agreement under which Susquehanna will acquire all outstanding shares of Tower in a stock and cash transaction. The deal will force Tower shareholders to either sell their holdings at $28.00 per share or receive 3.4696 shares of Susquehanna common stock in exchange for each share of Tower. The transaction is expected to close in the first quarter of 2012.
The investigation focuses on whether Tower’s board is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in light of the company’s recent positive financial results. On April 27, 2011, Tower reported first quarter earnings of $29.72 million, beating consensus estimates of only $27.07 million. Our investigation will also examine whether self-dealing and other employment guarantees played a part in Tower’s decision to enter into agreements with Susquehanna. Upon closing, several senior executives and directors of Tower are expected to receive new lucrative positions at Susquehanna. For example, Andrew Samuel, the Chairmen and Chief Executive Officer of Tower, is slated to become President and Chief Revenue Officer at Susquehanna. Further, Samuel and two current Tower Board members will be appointed to Susquehanna’s Board of Directors. Meanwhile, Jeffrey Renninger, Tower’s Chief Operating Officer, and Janak Amin, the Chief Executive Officer of Graystone Tower Bank, are both expected to receive senior management positions at Susquehanna.
If you own stock in Tower and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.