Sterling Bancorp, Inc. (the “Company”) (NASDAQ:SBT), the thrift holding company for Sterling Bank and Trust, F.S.B., Southfield, Michigan (the “Bank”), today announced that the Company reached an agreement to settle the shareholder demand for a derivative action originally set forth in a letter from a purported shareholder of the Company received on July 28, 2020 (the “Shareholder Demand”) and reflected in a shareholder derivative complaint that was recently filed against the Company and certain current and former directors of the Company. The settlement agreement provides for the Company’s adoption and implementation of certain corporate governance reforms and the payment of attorneys’ fees and expenses in exchange for the release of all defendants from all alleged claims.
The Demand Review Committee that was established by the Company’s Board of Directors after it received the Shareholder Demand negotiated the settlement with the purported shareholder. The settlement is documented in a definitive stipulation of settlement that has been entered into by the parties and will be submitted to the court for approval. Although the Company and the individual defendants named in the complaint deny any and all allegations of wrongdoing, the Demand Review Committee and the Company’s Board of Directors believe that the settlement is the most efficient manner for resolving this matter.
The definitive stipulation of settlement remains subject to court approval and other customary conditions. The full amount of the attorneys’ fees and expenses due under the settlement will be paid by the Company’s insurance carriers under applicable insurance policies.
