According to the Complaint, Paragon Commercial Corporation ("Paragon" or the Company) is the parent company of Paragon Bank, which provides a private banking experience to businesses, professionals, executives, entrepreneurs, and other individuals.

On April 26, 2017, the Individual Defendants caused the Company to enter into the Merger Agreement with Towne. Pursuant to the terms of the Merger Agreement, shareholders of Paragon will receive 1.7250 shares of Towne common stock for each share of Paragon common stock. Defendants filed the Proxy Statement with the SEC in connection with the Proposed Transaction. The Complaint alleges that the Proxy Statement omits material information with respect to the Proposed Transaction, which renders the Proxy Statement false and misleading.

This case was voluntarily dismissed on January 16, 2018.