Sioux Falls,S.D.-based HF Financial Corp.entered into a memorandum of understanding with the plaintiff's lawyer regardingthe settlement of a lawsuit challenging the mergerwith Great Western Bancorp Inc.
According toa Form 8-K filing, the plaintiff, Shiva Stein, alleged that HF's board breachedfiduciary duties by failing to enhance stockholder value as a merger candidate andfor failing to make adequate disclosure in a Form S-4 filed March 3. HF believedthe claims were without merit.
A hearing hadbeen scheduled April 27.
On April 22,HF and the plaintiff reached an MOU contemplating settlement of the lawsuit, withthe company agreeing to make disclosures regarding the merger and the plaintiffagreeing to stay the proceeding and withdraw the request for a preliminary injunction.