Now, just days after Smithtown announced it is being taken over in a $60 million deal by People's United Financial Inc. of Connecticut, several law firms are again suggesting that stockholders are being ripped off.
The terms of the deal are for cash and stock and Smithtown shareholders would get the equivalent of $4 a share -- not much of a premium over the $3.82 the stock closed at on Monday, but on the other hand, quite a bit higher than the zero dollars shareholders would get if the troubled bank had failed.
In their notices seeking potential clients, law firms suggested that Smithtown leadership failed to do their fiduciary duty to shop the bank around. In the past six months, the company's stock has been as high as $6.02 a share and as low as $2.15.
Smithtown chief executive Bradley Rock did not return a request for comment
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