NEW YORK, April 27, 2017 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of Paragon Commercial Corporation ("PBNC" or the "Company") in connection with the proposed acquisition of the Company by TowneBank ("TOWN"). Under the terms of the agreement, the Company's shareholders will receive 1.725 shares of TOWN for each share of PBNC they own, representing consideration of $59.29 based on TOWN's April 26 closing price.
WeissLaw is investigating whether PBNC's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the deal will position TOWN as an industry leader; according the acquisition announcement, TOWN "will possess the second largest market share among community banks operating in the demographically attractive Raleigh, North Carolina MSA." Additionally, PBNC has consistently announced double digit growth, reporting recently year-over-year increases in net income of 22% and 18% in the fourth quarter of fiscal year 2016 and in the first quarter of fiscal year 2017 respectively.
Given these facts, WeissLaw is investigating whether PBNC's Board acted in the best interests of PBNC's public shareholders to maximize shareholder value prior to entering into the agreement. If you own PBNC shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at [email protected].
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at [email protected] or fill out the form on our website, http://www.weisslawllp.com/paragon-commercial-corporation/
SOURCE WeissLaw LLP