Bank of Hemet in California has filed a motion asking a Riverside Superior Court judge to dismiss a $1.6 million class action filed by shareholders of a local thrift it bought in 1992.
The suit, filed last year by more than 500 Inland Savings and Loan shareholders, accuses the Hemet-based bank's directors of breach of contract and fiduciary duty. If the motion to dismiss fails, the judge said the case will be tried this spring.
Bank of Hemet bought Inland Savings and Loan for about $5 million in 1992. The plaintiffs claim that Bank of Hemet devalued about 139,000 shares of preferred stock when it converted them to Bank of Hemet common stock in 1995.
Bank of Hemet has an agreement to be acquired by Pacific Community Banking Group this spring.
Los Angeles attorney Gregory A. Long, who is representing Bank of Hemet, said the suit would have "no impact" on that deal. The motion for dismissal is to be heard March 5.