Capstar Financial Merges with Old National Amid Lawsuit

Capstar Financial Holdings Inc (CSTR) has released an update.

CapStar Financial Holdings, Inc. is merging with Old National Bancorp in a move that will see CapStar merge into Old National, with the latter as the surviving corporation. This strategic alliance has been unanimously approved by both companies’ boards, aiming to strengthen their market position. Post-merger, CapStar’s subsidiary bank will also merge with Old National’s subsidiary bank. However, a lawsuit alleging nondisclosure of material facts and breach of fiduciary duties by CapStar’s directors has been filed, which the companies believe is without merit. They’ve issued supplemental disclosures to mitigate litigation risks and avoid merger delays, maintaining that no additional disclosures are legally required.

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