Norwood, Mass.-based Blue Hills Bancorp Inc. and its directors are facing a class-action lawsuit over its planned acquisition by Rockland, Mass.-based Independent Bank Corp. for $726.5 million.
Paul Parshall, a Blue Hills shareholder, filed a complaint on behalf of all company shareholders alleging that the sale of Blue Hills Bancorp undervalues the company and subsidiary Blue Hills Bank. Blue Hills Bancorp also allegedly omitted material information from Independent Bank's Form S-4 registration statement. The shareholder seeks multiple forms of relief, including preliminary and permanent injunction from proceeding with the merger, payment for damages if the merger is completed and other fees in connection with the litigation.
Blue Hills Bancorp said that the allegations are without merit and that it will defend against them.