(CN) - A shareholder derivative action filed in Charlotte seeks to compel Capital Bank to release information the class claims is vital to its making an informed decision on the bank's proposed merger with another regional bank.
First Horizon National Corp. announced on May 4 that it plans to buy Capital Bank for $2.2 billion to enlarge its presence in the southeast.
According to the two banks, the combined company will have $40 billion in assets and $32 billion in deposits and will operate more than 300 branches across the Southeast, including Tennessee, South Carolina, Florida and Virginia.
But in a federal complaint filed July 17, lead plaintiff Stephen Bushansky says the registration statement filed by Capital Bank last month is misleading because it failed to include financial projections and other information he and other shareholders need to cast an informed vote about the merger.
Bushansky also says omitting this information from the statement is in violation of the Securities Exchange Act.
He wants the board of directors of Capitol Bank to provide the allegedly missing information and give the class enough time to review the details prior to the vote. He claims without Capital Bank remedying the situation, stockholders will be forced to cast blind votes.
Bushansky is represented by Janet Ward Black of Greensboro, North Carolina and Richard Acocelli of Weisslaw LLP in New York.
Representatives of Capital Bank did not respond to a phone call seeking comment.