Atlantic Coast Financial Corp (ACFC) has settled litigation with shareholders who objected the terms of its proposed merger with Bond Street Holdings.
The settlement, signed Wednesday, provides additional disclosure over the terms of the sale but does not raise the price. Investors had filed a class-action lawsuit on May 20 against the Jacksonville-based Atlantic Coast and members of Atlantic Coast's board, claiming that the $5 per-share merger price is too low.
Atlantic Coast continues to deny that it did wrong but agreed to the settlement "merely to eliminate the time, expense and uncertainties inherent in further litigation," it said.
The additional disclosure largely concerns financial analysis of the merger performed by Keefe, Bruyette & Woods.
Atlantic Coast stockholders will vote on the merger, which regulators have already approved, on June 11. The merger has been loudly opposed by former Atlantic Coast chairman and current board member Jay Sidhu.
Atlantic Coast's shares were trading at $5.16 early Thursday.