Jacksonville, Fla.-based Atlantic Coast Financial Corp. on March 8 agreed to make supplemental disclosures related to its proposed merger with Moultrie, Ga.-based Ameris Bancorp, in order to have a lawsuit related to the deal be withdrawn.
Paul Parshall agreed to withdraw the putative stockholder class action lawsuit he filed on March 5 against Atlantic Coast and the directors of Atlantic Coast and Ameris. Parshall claimed that the definitive proxy statement related to the merger was misleading because it did not disclose certain information about certain management financial projections, anticipated synergies of the merger, and the fairness opinion provided by Hovde Group LLC.
While Atlantic Coast believes that the lawsuit is without merit, it agreed to make the additional disclosures to moot Parshall's disclosure claims and reduce expenses, burdens, and uncertainties inherent in litigation.
