A mutual savings bank in Elmwood Park, N.J., filed suit Thursday against Lawrence B. Seidman, alleging that he is orchestrating an illegal takeover attempt.
The complaint by the $1.8 billion-asset Spencer Savings Bank, filed in U.S. District Court in New Jersey, accuses Mr. Seidman of working with colleagues to seize control of the mutual thrift by influencing its board of directors and by trying to obtain board seats.
The complaint says Mr. Seidman, who is a depositor at Spencer and has a long history of shareholder activism at publicly traded banking companies, is seeking personal profit by trying to force Spencer to convert to a stock-owned bank.
The law prohibits attempts by outsiders to gain control of a mutual savings institution, a special legal entity that has no shareholders, according to the complaint.
Reached for comment Thursday, Mr. Seidman said, "So they sued me. Big deal." He has brought several lawsuits of his own against Spencer over the years.
