The board of directors of Sterling Bancorp, Inc. is being investigated for potential claims in relation to its proposed acquisition by Provident New York Bancorp.
Brodsky & Smith, LLC, which is handling the investigation, said possible breaches of fiduciary duty and other violations of the state law may have been committed by the board for not looking after the company shareholders' best interests in connection with the sale.
The terms of the transaction provide that Sterling shareholders will receive only 1.2625 shares of Provident stock for each share of Sterling stock. This may undervalue the company which has a price target for Sterling stock $11.50 per share.
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