Stilwell calls Prudential Bancorp's creation of a director emeritus for Judge 'a misuse of corporate funds'

By Lisa Kerner

Charlotte, N.C., June 16 - Prudential Bancorp of America investor Joseph Stilwell of Stilwell Value Partners I, LP disagreed with the company's creation of a director emeritus classification for John P. Judge and its plan to pay Judge a $500 monthly stipend and to cover his insurance.

As previously announced, 87-year-old Judge resigned from the company's board effective June 18 citing his health and the health of his spouse.

Judge said he also wanted to avoid the expense of defending himself against allegations brought by Stilwell.

Prudential Bancorp appointed Judge as a director emeritus effective July 1.

Stilwell, in a June 13 letter to the Prudential Bancorp's board, called the company's action a "misuse of corporate funds for sentimental purposes" that reinforces an "atmosphere of unaccountability."

The letter was included as part of a schedule 13D filed with the Securities and Exchange Commission.

Stilwell also noted that his demand letter of May 14 to the company requires an independent investigation and determination. The letter demands in part that the board consider alternatives to assure recognition of minority shareholder rights with regard to a vote on the stock plans.

Prudential Bancorp is a Philadelphia-based holding company for Prudential Savings Bank, which operates six full-service branches in the Philadelphia area.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.