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Shareholder activist: HomeStreet arguments display 'bad faith and gumption'

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Shareholder activist: HomeStreet arguments display 'bad faith and gumption'

HomeStreet Inc.'s pushback against a shareholder activist's proposals and board nominations is a "disgraceful" attempt to "avoid accountability," according to Roaring Blue Lion Capital Management LP.

Roaring Blue Lion beneficially owns about 5.97% of the Seattle-based company, and has called for board representation and a change in strategy. In late February, it named its director nominees and notified HomeStreet of proposed bylaw amendments. HomeStreet has called the latest development invalid.

Roaring Blue Lion, in a press release criticizing HomeStreet's arguments, pointed out that the company had "similarly attempted to impede [a 2015] accounting investigation by the [Securities and Exchange Commission]" and ended up paying $500,000 to settle the case. The rejection of its notice of proposals, the shareholder activist wrote, "takes a pathetic mix of bad faith and gumption."

Roaring Blue Lion said it will send "a comprehensive response" to the company and demand compliance with Washington state law and HomeStreet's own bylaws. The activist is pushing through with its proxy solicitation.