Investment Group Misrepresented Intentions, a Chicago Thrift Claims in

Standard Financial Inc. is suing a shareholder it says lied in telling the SEC it was just a passive investor.

In fact, says the suit, filed Dec. 9, LaSalle/Kross Partners is interested in changing the governance of the $2.3 billion-asset thrift, and possibly in selling it.

The suit is the latest stage in the long fight with LaSalle/Kross, which jacked up its ownership stake in Standard Financial to 5.4% and nominated two directors shortly before the suit was filed.

Standard claims LaSalle/Kross misrepresented its intentions in an Oct. 16 filing with the Securities and Exchange Commission after increasing its stake in the thrift. The Detroit investment firm said in that filing it had increased its stake for investment purposes.

The 19-page suit charges that the firm is behaving unlawfully by not amending its filing to state its true intentions.

"They said their plans were for investment and they made no mention of plans to nominate directors or influence business," thrift vice president Randall R. Schwartz said in an interview.

The suit, filed in the U.S. District Court for the Northern District of Illinois, seeks a 30-day order enjoining the activists from acquiring, selling, or voting their shares and from making any action affecting the business or governance of Standard Financial.

One of the partnership's principal investors, Peter T. Kross, has made a name for himself for pushing Michigan-based thrifts to sell.

Richard J. Nelson, the other principal LaSalle/Kross investor, claimed the suit was groundless.

"We don't think it has any merit," he said. "It's basically harassment."

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