April 17, 2017 (Shareholders Foundation) - An investor, who currently holds shares of Royal Bancshares of Pennsylvania, Inc. (NASDAQ:RBPAA), filed a lawsuit in effort to halt the proposed takeover of Royal Bancshares of Pennsylvania, Inc. by Bryn Mawr Bank Corporation.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:RBPAA stockholders by agreeing to sell Royal Bancshares of Pennsylvania, Inc. too cheaply via an unfair process to Bryn Mawr Bank Corporation.

On January 31, 2017, Bryn Mawr Bank Corporation (Nasdaq:BMTC) (the “Corporation”), parent of The Bryn Mawr Trust Company (the “Bank”), announced that Bryn Mawr Bank Corporation has entered into an agreement and plan of merger (the “Merger Agreement”) to acquire Royal Bancshares of Pennsylvania, Inc. (NASDAQ:RBPAA), parent company of Royal Bank America, in a transaction with an aggregate value of $127.7 million. Under the terms of the Merger Agreement, Class A shareholders of Royal Bancshares of Pennsylvania, Inc. (NASDAQ:RBPAA) will receive 0.1025 shares of the Corporation’s common stock for each share of Royal Bancshares of Pennsylvania, Inc’s Class A common stock and Class B shareholders of Royal Bancshares of Pennsylvania, Inc. will receive 0.1179 shares of the Corporation’s common stock for each share of Royal Class B common stock.

However, plaintiff claims that the proposed consideration NASDAQ:RBPAA shareholders will receive is grossly inadequate and undervalues Royal Bancshares of Pennsylvania, Inc. In addition, the plaintiff alleges that the process is also unfair NASDAQ:RBPAA stockholders.

Shares of Royal Bancshares of Pennsylvania, Inc. (NASDAQ:RBPAA) closed on April 17, 2017, at $4.02 per share