Towson, Md.-based Hamilton Bancorp Inc. is facing two lawsuits, both filed March 5, from purported company shareholders over its planned merger into Shippensburg, Pa.-based Orrstown Financial Services Inc.
Michael Rubin filed suit against Hamilton Bancorp and its directors seeking preliminary and permanent injunctions on the deal unless sufficient disclosures are provided. Paul Parshall filed a class action suit against the company, its directors and Orrstown Financial Services, alleging that Hamilton Bancorp’s directors breached their fiduciary duties when they omitted certain material information regarding the merger in the prospectus.
The first suit was filed in the U.S. District Court for the District of Maryland, while the latter was filed in the Circuit Court for Baltimore City, Md.
Hamilton Bancorp said the claims are without merit and that it has provided sufficient disclosures in its prospectus. It also provided supplemental disclosures to avoid litigation-related expenses.
The company's board continues to advise shareholders to vote in favor of the merger.