Porter Bancorp, Inc. Announces Verdict and Plans Appeal
July 19 2013 - 5:52PM
Business Wire
On July 16, 2013, a jury in Louisville, Kentucky returned a
verdict against PBI Bank, the banking subsidiary of Porter Bancorp,
Inc. (NASDAQ: PBIB), awarding the plaintiffs compensatory damages
of $1,515,000 and punitive damages of $5,500,000.
The case arose from a settlement in which PBI Bank agreed to
release the plaintiffs and guarantors from obligations of more than
$26 million related to a real estate project in Louisville. The
plaintiffs were granted a right of first refusal to repurchase a
tract of land within the project. In exchange, the plaintiffs
conveyed the real estate securing the loans to PBI Bank. A
third-party made an offer to purchase the tract of land. After
plaintiffs declined to exercise their right of first refusal, PBI
Bank sold the tract to the third-party. Plaintiffs alleged that the
Bank had knowledge of the third-party before the conveyance of the
land by the Plaintiffs to the Bank. Plaintiffs asserted claims of
fraud, breach of fiduciary duty, breach of the duty of good faith
and fair dealing, tortuous interference with prospective business
advantage and conspiracy to commit fraud, negligence, and
conspiracy against PBI Bank.
After conferring with its legal advisors, PBI Bank believes the
findings and damages are excessive and contrary to the law, and
that it has meritorious grounds to seek reconsideration of the
verdict and to appeal. PBI Bank intends to file motions to reduce
or overturn the award and otherwise for reconsideration of the
case.
About Porter Bancorp, Inc.
Porter Bancorp, Inc., a bank holding company headquartered in
Louisville, Kentucky, had $1.1 billion in assets as of
March 31, 2013. Through Porter’s subsidiary PBI Bank, it
operates 18 full service banking offices in Kentucky. Porter
Bancorp’s common stock is traded on the Nasdaq Capital Market under
the symbol “PBIB.”
Forward-Looking Statements
Statements in this press release relating to Porter Bancorp’s
plans, objectives, expectations or future performance are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. The words “believe,”
“may,” “should,” “anticipate,” “estimate,” “expect,” “intend,”
“objective,” “seek,” “plan,” “strive” or similar words, or
negatives of these words, identify forward-looking statements.
These forward-looking statements are based on management’s current
expectations. Porter Bancorp’s actual results in future periods may
differ materially from those currently expected due to various
risks and uncertainties, including those discussed under “Risk
Factors” in the Company’s Form 10-K and subsequent periodic reports
filed with the Securities and Exchange Commission. The
forward-looking statements in this press release are made as of the
date of the release and Porter Bancorp does not assume any
responsibility to update these statements.
PBIB-F PBIB-G
Porter Bancorp, Inc.John T. Taylor, 502-499-4800President
Porter Bancorp, Inc. (delisted) (NASDAQ:PBIB)
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