Halper Sadeh LLC Is Investigating Whether the Sale of First Financial Northwest Bank to Global Federal CU is Fair to Shareholders

Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale of First Financial Northwest Bank, a wholly-owned subsidiary of First Financial Northwest, Inc. (NASDAQ: FFNW), to Global Federal Credit Union is fair to First Financial shareholders. The proposed transaction is structured as a purchase and assumption agreement with Global purchasing substantially all assets and assuming substantially all liabilities of First Financial Northwest Bank for the all-cash consideration of $231.2 million, subject to certain adjustments.

The investigation concerns whether First Financial and its board of directors violated the federal securities laws and/or breached their fiduciary duties to shareholders by failing to, among other things: (1) obtain the best possible consideration for First Financial shareholders; (2) determine whether Global is underpaying for First Financial Northwest Bank; and (3) disclose all material information necessary for First Financial shareholders to adequately assess and value the merger consideration.

Long time credit union attorney, Henry Meier, Esq., noted, “Because of their structure as not-for-profit mutual corporations, credit unions are largely shielded from derivatives litigation in response to credit union mergers. But as more banks merge into credit unions, it is inevitable that these banks will face increased litigation in this area. It is just one more cost that all parties will have to take into account when deciding if a merger is in the best interest of their financial institutions.”  

On behalf of First Financial shareholders, Halper Sadeh LLC may seek increased consideration for shareholders, additional disclosures and information concerning the proposed transaction, or other relief and benefits.