Strata Investor Wins Court Ruling
Unhappy Strata Bank investor Kenneth R. Lehman has won a ruling from U.S. District Court Magistrate Ralph D. Gants that orders Strata Bank officials to provide him with a list of its stockholders and their addresses so he can mail a nine-page letter detailing his financial performance concerns to other investors.
Lehman initially contacted Strata Bank officials with his concerns, including a request to be made a board member. The bank rebuffed his pursuit of a seat on the board, and he went public with a full-page newspaper ad that detailed his concerns about the bank's non-performing loans and the money it spent on a new central office in Franklin.
Lehman, who with his wife owns about 11.4 percent of Strata's parent company Service Bancorp.'s stock, also filed a lawsuit in U.S. District Court in Suffolk Superior Court asking for a list of Strata's shareholders, other documents and any costs he incurred.
The court ruled that Lehman had proved the necessary four requirements: that his demand was in good faith and for a proper purpose; was reasonably specific about what records and information he requested; that the records are directly related to the purpose; and the corporation did not determine in good faith that disclosing the records would harm its business.
"In short, this court finds that Service Bancorp.'s objections to the letter arise from the fact that the letter vigorously criticizes management and its performance, not from any harm the letter may cause," according to court documents.
Strata Bank went from a mutual bank to a holding company with publicly traded shares 10 years ago.
"We're not surprised that a shareholder list could be accessed," said Service Bancorp. CEO Pamela J. Montpelier. "It really doesn't have effect on us. Mr. Lehman feels the need to be heard and unfortunately he's chosen a lawsuit to do so."
The bank talks to all of its shareholders, she said, and must do what it believes is right for all of its stockholders and depositors, she said.
"We need to be diligent on our financial performance and that is where we need to be focused," she said.
Lehman would not comment on the order, saying it speaks for itself.
Service Bancorp. has until Friday to provide Lehman with the list, according to the ruling.
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