Paul Parshall, a stockholder of Ashland, Ky.-based Poage Bankshares Inc., filed a complaint against the company and its directors over Poage's proposed merger with City National Bank of West Virginia.
Parshall alleged that the companies excluded material information from City National's registration statement and that Poage's management and directors undervalued the bank, thereby breaching their fiduciary duty to its shareholders.
The complaint is seeking to halt the merger. Parshall is also seeking damages and court fees if the proposed merger is completed.
Poage and its directors said in a regulatory filing that the allegations are without merit.
City National Bank of West Virginia is a unit of City Holding Co.