DUROSINMI  Oluwa, a shareholder of Sterling Bank Plc has dragged Mr Yemi Adeola, managing director of the bank, and four others to a Federal High Court, Lagos alleging massive and illegal manipulation of his shares with the bank from N20,669,549.95  to  N8,768,402.56.
Others listed as co-defendants in a suit filed before Justice Lambo Akanbi  are Sterling bank, Ess-Ay Investment Limited, Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange (NSE).
 In his statement of claim the plaintiff submitted that pursuant to the directive by the Central Bank of Nigeria (CBN) for bank consolidation in 2005, NAL Bank Plc, Indo-Nigeria Bank Plc, Magnum Trust Bank Plc, NBM Bank and Trust Bank of Africa filed application to be merged before a Federal High Court, after which the court sanctioned the scheme of merger and all the banks became Sterling bank.
 The plaintiff further submitted that on July 11, 2008, the NSE at the instance of Sterling bank placed the shares of the bank on total suspension from daily trading to carry out a reconstruction of its shares and the price was frozen at N6.65, adding that the suspension was later lifted on September 3, 2008.
 Oluwa pointed out that a clarification statement posted on the bank’s website on the post-merger adjustment revealed that representatives of the original legacy banks which merged to form Sterling bank submitted a report dated March 13, 2007 recommending the issuance of N13,31,026,285 ordinary shares as compensation shares to be issued to the various shareholders of the legacy banks who hitherto, were the holders of 10,552,847,651 ordinary shares of the bank.
The Shareholder is therefore seeking an order of the court canceling each compensatory shares allotted and forfeiture of  same.
 However, Sterling bank in its statement of defence denied culpability in the suspension of the shares, adding that the suspension was operationally carried out by NSE in consonance with its rules and regulations.  It added that the suspension was effected to allow the NSE list additional shares of the bank issued pursuant to the post-merger adjustment of its shares.
Also in its statement of defence NSE stated that the first defendant’s (sterling Bank) stockbroker, Nigerian Stockbrokers Limited wrote to regulatory authorities including NSE, for the suspension of the stock and shares of Sterling Bank, pending the completion of the post merger adjustment of its shares.
The NSE posited that the request was granted to create room for the reconstruction of Sterling bank shares as approved by its shareholders pursuant to Companies and Allied Matters Act and Investment and Securities Act.  The presiding judge has adjourned the matter till July 28, 2009 for adoption of written addresses.