#USA #Pomerantz LLP #IF Bancorp #Illinois #ServBanc Holdco

Pomerantz Law Firm Files Class Action Against ServBanc Holdco and Affiliates

On May 14, 2026, Pomerantz LLP announced the filing of a class action lawsuit against ServBanc Holdco, Inc., and its affiliates, including ServoBank, National Association, and the board members of IF Bancorp, Inc. The suit, lodged in the United States District Court for the Northern District of Illinois, arises from allegations that the board misled shareholders during the merger solicitation process.

Background of the Case

This class action stems from perceived violations of the Securities Exchange Act of 1934, specifically Sections 14(a) and 20(a). According to the plaintiffs, these actions relate to the inaccurate representations made to shareholders about the consideration they would receive from the merger between IF Bancorp and ServBanc Holdco. The plaintiffs claim that misleading information was used to gain approval for the merger, categorized as a violation of SEC Rule 14a-9.

IF Bancorp, which operated as the holding company for Iroquois Federal Savings and Loan Association in Watseka, Illinois, became embroiled in this controversy after a shareholder vote on November 25, 2024, approved a resolution for the company’s sale. Following the merger agreement on October 30, 2025, the board issued a definitive proxy in December disclosing misleading financial figures indicating shareholders might receive approximately $27.20 per share in case of the merger.

The Controversial Proxy Document

The proxy document issued by the board, as per claims, was fraught with misleading elements. It presented a premium of merely $1.90 or 6.98% over the closing stock price prior to the merger announcement. However, it failed to disclose critical factors regarding the company’s tangible common equity, which would significantly alter the actual value of shares holders would receive.

The proxy stated that the proposed merger consideration would undergo deductions if IF Bancorp's tangible common equity fell below a certain threshold, misleading shareholders about the security of the promised payment. The potential for shareholders to receive a 'special dividend' was also highlighted; however, plaintiffs argue that this was similarly misleading as there was little likelihood of meeting the equity requirement for such distributions.

Consequences for Shareholders

This alleged misrepresentation culminated in shareholders approving the merger based on inaccurate data and narratives. The plaintiffs claim that they were deprived of their rights to make informed decisions and to exercise appraisal rights, resulting in financial losses when forced to sell shares at a reduced value.

The class action seeks justice not only for the alleged mishandling but also for the misinformation that led shareholders into a precarious financial situation.

Looking Ahead

As the case unfolds, shareholders who acquired IF Bancorp securities during the relevant class period have until June 29, 2026, to seek appointment as Lead Plaintiff in the ongoing litigation. Pomerantz LLP, notable for its long history in handling corporate law and securities actions, continues to advocate for shareholders’ rights. Interested parties are encouraged to reach out for further inquiries and potential involvement in the class action.

For more information about joining the class action or discussing this lawsuit, contact Danielle Peyton at Pomerantz LLP, or visit PomerantzLaw.com.

With this ongoing case, the backdrop of corporate governance standards returns to the forefront as shareholders wrestle with ensuring that their interests are aptly represented during significant corporate transitions, such as mergers and acquisitions.