An activist investor group has threatened to file a lawsuit against Orrstown Financial Services (ORRF) unless the Shippensburg, Pa., company makes certain changes to its bylaws.

PL Capital, which is run by Richard Lashley and John Palmer, claim in a Dec. 3 letter to Orrstown's management, that the company violated state and federal regulators' enforcement actions when it changed its bylaws to require directors maintain a permanent residence within 50 miles of Orrstown's headquarters.

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