First Citizens Sued Over 'Only In NC' Forum Choice Bylaw

By Matt Chiappardi (June 20, 2014, 8:14 PM EDT) -- The city of Providence, Rhode Island, lodged a putative class action late Thursday in Delaware Chancery Court, challenging First Citizens BancShares Inc.'s new forum selection bylaw that mandates nearly all shareholder disputes be litigated in North Carolina, despite the company being incorporated in The First State.

Providence, which is a common stockholder of First Citizens BancShares, also known as First Citizens North, alleges that the new bylaw is invalid under Delaware General Corporation Law that gives the Chancery Court exclusive jurisdiction for many shareholder claims against Delaware-organized companies, and that the bylaw strips investors of the right to avail themselves of...

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