Halper Sadeh LLC has launched an investigation into Colony Bankcorp’s proposed merger with First Reliance Bancshares, alleging fiduciary breaches over the $19.75 cash or 0.94-share per FSRL share offer. The firm plans to seek higher consideration, enhanced disclosures or other remedies on a contingent fee basis.
Halper Sadeh LLC on July 2 announced a probe into Colony Bankcorp’s merger with First Reliance Bancshares, citing potential breaches of fiduciary duty related to the transaction terms. The firm is evaluating whether insiders received unfair advantages compared with ordinary shareholders.
Under the definitive agreement, First Reliance shareholders will receive $19.75 in cash or 0.94 shares of Colony Bankcorp common stock for each share held. The transaction structure may limit superior competing offers and fix the consideration mix between cash and stock.
The firm may pursue litigation seeking increased deal consideration, additional disclosures or other relief on a contingent fee basis, with no upfront legal fees for shareholders. Eligible investors are encouraged to assess their rights and options before the merger closes.
