Pacific Mercantile Bancorp

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Ademi LLP is investigating Pacific Mercantile (NASDAQ: PMBC) for possible breaches of fiduciary duty and other violations of law in its transaction with Banc of California.

Ademi LLP alleges Pacific Mercantile’s financial outlook is excellent and yet Pacific Mercantile shareholders will receive only 0.5 shares of Banc of California common stock for each share of Pacific Mercantile common stock they own or $9.77 per share, based on the closing price for Banc of California’s common stock of $19.54 as of March 22, 2021.  The merger agreement unreasonably limits competing bids for Pacific Mercantile by prohibiting solicitation of further bids, and imposing a termination penalty if Pacific Mercantile accepts a superior bid. Pacific Mercantile insiders will receive millions of dollars as part of change of control arrangements. We are investigating the conduct of Pacific Mercantile’s board of directors, and whether they are (i) fulfilling their fiduciary duties to all shareholders, and (ii) obtaining a fair and reasonable price for Pacific Mercantile.