Lawsuit Seeks to Block Merger Between StellarOne and and Union First Bankshares

The Charlottesville Daily Progress reports that a class action lawsuit has been filed in the Western District of Virginia to block the proposed merger between StellarOne and Union First Bankshares.  Richmond-based Union First announced plans to acquire StellarOne on June 10, 2013.  StellarOne's holding company is located in Charlottesville, while its bank headquarters are located in Christiansburg, Virginia.  The lawsuit, filed four days after the announcement, alleges that the proposed acquisition would "unfairly deprive" StellarOne's shareholders of potential investment value and allegedly constitute a breach of fiduciary duty.  The defendants have filed a motion to dismiss arguing, among other things, that the plaintiffs lack standing to challenge the merger.  The case, which was filed in the Charlottesville division, is being heard by Judge Moon.  I have two minor interests in this case.  First, I have a mortgage with StellarOne.  And second, I used to work with the attorneys for some of the defendants when I practiced law in Richmond.