Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Smithtown Bancorp Inc. - SMTB
The Board of Directors of Smithtown Bancorp Inc. is being investigated by Levi & Korsinsky, LLP in connection with their attempt to sell the Company to People's United Financial, Inc. for possible breaches of fiduciary duty and other violations of state law.
- New York, NY (1888PressRelease) July 21, 2010 - Levi & Korsinsky is investigating the Board of Directors of Smithtown Bancorp Inc. ("Smithtown Bancorp" or the "Company") (NasdaqGS: SMTB) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to People's United Financial, Inc., (NasdaqGS: PBCT) ("People's United"). Under the terms of the transaction, each Smithtown shareholder will get 0.1430 People's United shares and $2.00 in cash for each Smithtown Bancorp share of common stock they own. Based on the average closing price of People's United shares for the five-day period ended July 14, 2010, the transaction values Smithtown Bancorp stock at approximately $4.00 per share for a total transaction value of approximately $60 million.
The investigation concerns whether the Smithtown Bancorp Board of Directors breached their fiduciary duties to Smithtown Bancorp stockholders by failing to adequately shop the Company before entering into this transaction and whether People's United is underpaying for Smithtown Bancorp shares, thus unlawfully harming Smithtown Bancorp stockholders. In particular, Smithtown Bancorp shares traded at $4.14 per share on July 12, 2010 and $5.68 per share as recently as April 27, 2010 and at least one analyst set a price target for Smithtown Bancorp stock at $7.00 per share.
If you own common stock in Smithtown Bancorp and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi ( @ ) zlk dot com or by telephone at (212) 363-7500 or visit http://www dot zlk dot com/smithtown-bancorp-smtb dot html dot
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.
CONTACT:
Levi & Korsinsky, LLP
Joseph Levi, Esq.
Eduard Korsinsky, Esq.
30 Broad Street - 15th Floor
New York, NY 10004
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com
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