A Bay Bancorp Inc. shareholder Dec. 14 filed a proposed class-action lawsuit against the Columbia, Md.-based company, its board and would-be acquirer Old Line Bancshares Inc.
Adam Franchi alleges that Bay and Old Line's registration statement omitted information material to their merger and was therefore "false and misleading." In particular, Franchi argues, the disclosure lacks financial projections, valuation analyses and potential conflicts of interest. The plaintiff alleged the filing failed to specify the services Hovde Group has previously provided the bank, despite Hovde's co-founders, Eric Hovde and Steven Hovde, also being Bay board members.
Franchi seeks the merger's termination, or the payout of rescissory damages in the event the transaction closes.