Local law firm urges shareholders to file suit

The Strom Law Firm is urging shareholders of 18 South Carolina banks and bank companies to contact it regarding possible legal action related to stock losses.

“While the FDIC provides protection for the assets of bank customers affected by intervention and/or closure, bank investors and shareholders suffering financial loss must seek legal action to recover for losses, including stock loss,” reads a press release put out by the firm Wednesday.

The firm adds that if bank board members engaged in action that lead to investors suffering a financial loss or failed to take action which caused stockholders to suffer a loss, they may have a claim.

The firm then lists the following banks as companies in which investors may have suffered stock losses:

• Bank of Anderson
• Bank of Westminster
• Bank of Meridian
• Community South Bank and Trust
• First Federal of South Carolina
• Independence National Bank
• Plantation Federal Savings Bank
• Williamsburg First National Bank
• First South Bank Corp
• South Carolina Community Bank
• Congaree State Bank
• Carolina First, Greenville
• Tideland Bancshares
• Palmetto Bancshares
• Southern First Bancshares, Inc./Greenville First
• Woodlands Bank
• Beach First Bank
• First National Bank of the South

Many of the above are under orders from various federal regulators to improve their balance sheets.

Beach First and First National Bank of the South have both been seized by regulators this year, First National just last Friday.

Carolina First is a subsidiary of The South Financial Group, which is in the process of being acquired by TD Bank Financial Group for 28 cents a share.

Last month, five shareholders of South Financial filed suit against the company, its directors and TD Bank Financial Group, alleging the merger agreement in which Canada-based TD Bank would acquire Greenville-based South Financial is unfair and contains a “shockingly low” offer price.

Bank of Meridian likely refers to BankMeridian of Columbia.

Tidelands Bancshares and Palmetto Bancshares are both holding companies, the former for Tidelands National Bank and the latter for The Palmetto Bank.

The Strom Law Firm was founded in 1996 by former US Attorney Pete Strom.

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