Bank Mutual

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We are investigating the Board of Directors of Bank Mutual Corporation (Nasdaq: BKMU) for possible breaches of fiduciary duty and other violations of Wisconsin law in connection with the sale of Bank Mutual to Associated.

We are alleging that Bank Mutual’s long-term financial outlook is improving and yet Bank Mutual shareholders will receive the equivalent of $10.38 per Bank Mutual common share or approximately $482 million in the aggregate.  Associated is well aware of Bank Mutual’s improving financial metrics and is purchasing Bank Mutual at a substantial discount. The merger agreement unreasonably limits competing bids for Bank Mutual by (i) prohibiting solicitation of any further bids, and (ii) imposing a termination penalty should Bank Mutual receive and accept a superior bid. Bank Mutual insiders, their affiliates and other major shareholders own significant voting stock, and will receive millions of dollars as part of change of control arrangements, and therefore can unduly influence a sale of Bank Mutual. Our investigation centers on the conduct of Bank Mutual’s Board of Directors, who have unanimously approved the transaction, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Bank Mutual given its current financial condition and prospects.