Western Alliance, Western Liberty settle shareholder lawsuit

Western Alliance Bancorp, the parent of Bank of Nevada, announced Tuesday it had settled an investor lawsuit concerning its purchase of Las Vegas-based Western Liberty Bancorp, and its subsidiary Service1st Bank of Nevada.

David Raul, a Western Liberty shareholder, filed suit last month in Clark County District Court seeking to kill the deal. He argued Western Liberty's board breached its fiduciary duties by agreeing to sell the company for $55 million, a price he described as "grossly inadequate."

In a regulatory filing, Western Alliance stated the companies believe the lawsuit "is without merit." But to avoid the "costs, risks and uncertainties inherent in litigation," all sides have entered into an agreement to settle the case.

The settlement is subject to court approval.