CapStar Bank Files Lawsuit Against Investor
November 01 2017 - 3:34PM
CapStar Financial Holdings, Inc. (“CapStar”), a bank holding
company that operates primarily through its wholly owned
subsidiary, CapStar Bank, a Tennessee-chartered state bank, filed a
lawsuit today against Gaylon M. Lawrence and The Lawrence Group.
The complaint alleges that Lawrence and The Lawrence Group made a
series of false and misleading securities filings and violated
federal and state banking laws in connection with accumulating a
stake in CapStar in excess of 10 percent.
"CapStar is committed to protecting the interests of all of our
shareholders and employees," said Claire Tucker, CEO of CapStar
Financial Holdings, Inc. "Our Board believes an important part of
its fiduciary obligations is taking steps to enforce laws intended
to protect our shareholders and other constituents. This is
important to help ensure all shareholders have an equal opportunity
to benefit from our strategic plan and any strategic
initiatives."
As filed today in the United States District Court for the
Middle District of Tennessee, CapStar’s complaint asserts three
claims:
- Violations of Section 13(d) of the Securities Exchange
Act of 1934 by repeatedly filing
disclosures that failed to disclose plans to acquire control of
CapStar or additional stock in the bank.
- Violations of the federal Change in Bank Control
Act, the statute requiring defendants to provide written
notice and to obtain regulatory approval from the Federal Reserve
60 days prior to crossing the 10 percent ownership level.
- Violations of the Tennessee Code Section
45-2-107, by acquiring 10 percent or more of the voting
stock of a bank without being a bank holding company.
About CapStarCapStar Financial Holdings, Inc.
is a bank holding company headquartered in Nashville, Tennessee,
and operates primarily through its wholly owned subsidiary, CapStar
Bank, a Tennessee-chartered state bank.
For more information, contact:
Rob Anderson (615) 732-6470
randerson@capstarbank.com
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