Shareholders file suit against former Asian Bank board members

Twenty-eight individual or corporate shareholders in the former First Asian Bank sued five former board members and the bank on Wednesday to recover losses that allegedly stemmed from mismanagement.

The complaint filed in Clark County District Court contends that the shareholders, who collectively held a 20.5 percent stake in the community bank, received just 3.66 cents a share when First Asian was sold to Los Angeles-based Royal Business Bank two years ago. But a recent valuation under a dissident shareholder provision of Nevada law found an actual value of $1.60 per share.

First Asian Bank, based in the Asian commercial corridor on Spring Mountain Road, opened in mid-2007. But it ran into numerous problems and was sold to Royal Business Bank in June 2011. At the time, the terms were not disclosed, but the court papers said the price was $49,400. First Asian had two branches, $30 million in assets and $28.6 million in deposits, according to a Royal Business Bank announcement.

The five former directors named as defendants belonged to what was termed a "majority board." Their attorney could not be reached for comment.

The complaint asks for the return of profits they allegedly made from the bank and turned over to the minority shareholders.

Contact reporter Tim O'Reiley at
toreiley@reviewjournal.com or 702-387-5290.