Xenith Bankshares, Executives Hit with Securities Lawsuit Over Proposed Merger

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Xenith Bankshares, Inc. and its board of directors are facing another lawsuit alleging they filed a misleading proxy statement in connection with a merger between Xenith and Union Bankshares Corporation. The plaintiff, a Xenith shareholder, claims the proxy statement is missing material information concerning the companies’ financial projections and the valuation analyses performed by the defendants' financial advisors. He argues that the proposed transaction is “severely inadequate” and fails to fairly compensate Xenith shareholders. The lawsuit demands that the defendants release the allegedly omitted details before shareholders are required to vote on whether they support the merger.