Sandy Spring Bancorp Faces Shareholder Lawsuits Following Merger Announcement

Sandy Spring Bancorp, Inc. faced legal action following its merger agreement with Atlantic Union Bankshares Corporation, according to a recent SEC filing. The filing states that three lawsuits were filed by shareholders of Atlantic Union against Atlantic Union, individual board members, Sandy Spring, and proxy solicitor Sodali & Co. The lawsuits include Delman v. Agee, et al., Miller v. Atlantic Union Bankshares Corporation, et. al., and Jones v. Atlantic Union Bankshares Corporation, et. al. Additionally, Sandy Spring received demand letters from counsel representing individual stockholders. The complaints allege violations of securities laws, breach of fiduciary duties, negligence, and misrepresentation in the merger process.

Sandy Spring Bancorp and Atlantic Union reiterated their belief that the claims are baseless and no further disclosures are required. They maintain that the merger is in the best interest of both parties. To mitigate potential delays or costs from the lawsuits, both companies decided to supplement the joint proxy statement/prospectus filed with the SEC on December 17, 2024.

The supplemental disclosures provided in the Form 8-K are meant to offer additional clarity without admitting any liability. They are intended to address concerns raised in the legal actions and ensure a smooth merger process. Among the disclosed information are details regarding the merger’s background, communications between the companies, financial terms, and discussions leading up to the agreement.

Sandy Spring and Atlantic Union stress that they are committed to completing the merger and that these legal challenges will not deter their efforts. Both companies have strong confidence in the merger’s value and potential benefits. The additional disclosures are seen as a proactive measure to prevent any potential disruptions to the merger process.

The legal matters and supplemental filings have not derailed the planned merger and both companies remain focused on a successful completion of the deal.

It is important to note that the information provided in the SEC filing is subject to legal proceedings, regulatory approvals, and potential variations in future financial results. Shareholders of Sandy Spring and Atlantic Union are advised to review the filed documents for a comprehensive understanding of the situation.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Sandy Spring Bancorp’s 8K filing here.

About Sandy Spring Bancorp

Sandy Spring Bancorp, Inc operates as the bank holding company for Sandy Spring Bank that provides commercial and retail banking, mortgage, private banking, and trust services to individuals and businesses in the United States. It offers financial products and services, including various loan and deposit products.