Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Smithtown Bancorp Inc. - SMTB
July 19 2010 - 3:02PM
Business Wire
Levi & Korsinsky is investigating the Board of Directors of
Smithtown Bancorp Inc. (“Smithtown Bancorp” or the “Company”)
(NasdaqGS: SMTB) for possible breaches of fiduciary duty and other
violations of state law in connection with their attempt to sell
the Company to People's United Financial, Inc., (NasdaqGS: PBCT)
("People's United"). Under the terms of the transaction, each
Smithtown shareholder will get 0.1430 People's United shares and
$2.00 in cash for each Smithtown Bancorp share of common stock they
own. Based on the average closing price of People's United shares
for the five-day period ended July 14, 2010, the transaction values
Smithtown Bancorp stock at approximately $4.00 per share for a
total transaction value of approximately $60 million.
The investigation concerns whether the Smithtown Bancorp Board
of Directors breached their fiduciary duties to Smithtown Bancorp
stockholders by failing to adequately shop the Company before
entering into this transaction and whether People's United is
underpaying for Smithtown Bancorp shares, thus unlawfully harming
Smithtown Bancorp stockholders. In particular, Smithtown Bancorp
shares traded at $4.14 per share on July 12, 2010 and $5.68 per
share as recently as April 27, 2010 and at least one analyst set a
price target for Smithtown Bancorp stock at $7.00 per share.
If you own common stock in Smithtown Bancorp and wish to obtain
additional information, please contact Joseph E. Levi, Esq. either
via email at jlevi@zlk.com or by telephone at (212) 363-7500 or
visit http://www.zlk.com/smithtown-bancorp-smtb.html.
Levi & Korsinsky has expertise in prosecuting investor
securities litigation and extensive experience in actions involving
financial fraud and represents investors throughout the nation,
concentrating its practice in securities and shareholder
litigation.
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