Sunwest Bank and its management were totally vindicated today in a defeat of a class action lawsuit brought by two minority shareholders. These shareholders wrongfully claimed that management had engaged in fraud and other misdeeds through the initiation of a Private Placement, Reverse Stock Split and Short Form Merger and sought over $24 million plus punitive damages.
After a lengthy trial, the Court found that Sunwest and its management, including Eric Hovde, its Chairman and CEO, at all times acted in good faith and exercised reasonable business judgment in connection with these corporate transactions.
Michael J. Sachs of Callahan & Blaine, APLC from Santa Ana, California, the trial counsel, stated: “This case highlighted how easy it is for a company, acting in good faith, to be held up for greenmail. Sunwest Bank, and in particular, Mr. Hovde, should be applauded for refusing to bend to greenmail, despite the intense pressures of five years of litigation and a lengthy trial.”
