Shareholders Sue State Bancorp For Fraud

Law360, New York (July 25, 2007, 12:00 AM EDT) -- State Bancorp Inc. revealed on Tuesday that it had been named in a shareholder derivative lawsuit alleging that the company breached its fiduciary duty when settling litigation concerning bankrupt firm Island Mortgage Networks Inc.

Long Island, N.Y.-based State Bancorp, a holding company for the State Bank of Long Island, disclosed the suit in its annual U.S. Securities and Exchange Commission filing.

The suit was filed July 18 in Nassau County Supreme Court and names a number of current and former executives of State Bancorp as defendants,...
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