October 07, 2014 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Simplicity Bancorp Inc (NASDAQ:SMPL), was announced concerning whether the takeover of Simplicity Bancorp Inc by HomeStreet, Inc is unfair to NASDAQ:SMPL stockholders.

The investigation by a law firm concerns whether certain officers and directors of Simplicity Bancorp Inc breached their fiduciary duties owed to NASDAQ:SMPL investors in connection with the proposed acquisition.

On September 29, 2014, HomeStreet, Inc. (NASDAQ:HMST) (HomeStreet) has entered into an agreement under which Simplicity Bancorp, Inc. (NASDAQ:SMPL) (Simplicity) will merge with HomeStreet, Inc., and Simplicity Bank will merge with HomeStreets subsidiary, HomeStreet Bank. Under the terms of the proposed transaction Simplicity Bancorp Inc (NASDAQ:SMPL) stockholders are expected to receive one share of HomeStreet common stock for each share owned of Simplicity common stock, subject to adjustment if HomeStreets closing stock price during a specified measurement period prior to closing is more than $20 or less than $15 per share.

However, the investigation concerns whether the offer is unfair to NASDAQ:SMPL stockholders. More specifically, the investigation concerns whether the Simplicity Bancorp Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Shares of Simplicity Bancorp Inc (NASDAQ:SMPL) grew from $75.3 per share in October 2010 to as high as $18.03 per share in March 2014.