IF Bancorp (IROQ)  Iroq Servbanc Merger Proxy Class Action Lawsuit. Did the ServBanc Merger Proxy Cheat Shareholders Out of Their Full Payout?

Pomerantz LLP has filed a class action lawsuit against ServBanc Holdco, Inc., ServBank, National Association, and the board of directors of IF Bancorp, Inc. (NASDAQ: IROQ) in the U.S. District Court for the Northern District of Illinois, alleging violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 14a-9. The lawsuit claims that IF Bancorp’s board sent shareholders a deliberately misleading proxy statement to win their vote on a merger — then closed the deal at a lower price than promised. If you purchased or otherwise acquired IF Bancorp securities during the class period, you have until June 29, 2026, to ask the court to appoint you as Lead Plaintiff for the class.

Field	Detail
Lawsuit Filed	April 28, 2026
Defendants	ServBanc Holdco, Inc.; ServBank, National Association; IF Bancorp, Inc. Board of Directors
Alleged Violation	Sections 14(a) and 20(a) of the Securities Exchange Act of 1934; SEC Rule 14a-9
Who Is Affected	IF Bancorp (NASDAQ: IROQ) shareholders who held shares during the class period and voted on or received consideration from the merger
Current Court Stage	Active litigation — recently filed
Court & Jurisdiction	U.S. District Court for the Northern District of Illinois, Case No. 26-cv-04873
Lead Law Firm	Pomerantz LLP (New York, Chicago, Los Angeles, London)
Lead Plaintiff Deadline	June 29, 2026
Merger Closed	March 12–13, 2026
Official Case Website	PACER: Jackson et al. v. ServBanc Holdco et al., No. 26-cv-04873, N.D. Ill.
Last Updated	May 12, 2026

What the IF Bancorp and ServBanc Merger Lawsuit Is About — Case No. 26-cv-04873, N.D. Ill.

Here is what happened. IF Bancorp, the Illinois-based holding company for Iroquois Federal Savings and Loan Association, agreed to be acquired by ServBanc Holdco in a deal announced in October 2025. Each share was expected to receive approximately $27.20 in cash, calculated as $89.8 million divided by shares outstanding, subject to a tangible common equity adjustment. Shareholders were also told they could receive a Special Dividend on top of that — if IF Bancorp’s tangible common equity at closing exceeded a $77.8 million threshold.

On December 30, 2025, the board authorized the filing of a definitive proxy on Schedule 14A with the SEC to solicit IF Bancorp shareholders to vote in favor of the merger. The lawsuit alleges that proxy was false and misleading — and here is the core of why. Iroquois Federal held a loan participation interest in the amount of $13,996,617 that it was required to renew before the merger closed, and it would need ServBanc Holdco to allow it to do so. Following renewal of the loan, IF Bancorp’s tangible common equity would fall below the merger consideration threshold because ServBanc Holdco would require it to establish a reserve against the loan.

In plain English: the board allegedly knew before shareholders voted that the $27.20 per share figure was not achievable — and that the Special Dividend would almost certainly never be paid. Yet the proxy did not disclose this risk clearly. After the definitive proxy was filed and mailed to shareholders, two lawsuits were filed in New York in January 2026 and four demand letters were sent alleging the proxy was false and misleading. IF Bancorp issued a supplemental proxy to address some concerns but denied all allegations. Shareholders voted to approve the merger on February 3, 2026, and the deal closed on March 12, 2026. This type of investment fraud lawsuit — where shareholders allege they were given misleading information to win their vote — is a well-established category of securities class action litigation under federal law. For context on how these proxy-related securities class action cases typically proceed, see our related coverage on AllAboutLawyer.com.

Related article: Hanesbrands Class Action Lawsuit, Did Hanes Send You Fake “Last Day” Sale Emails in Washington?

Are You Part of the IF Bancorp Class Action Lawsuit?

You may be part of this class if:

• You owned shares of IF Bancorp (NASDAQ: IROQ) at any point during the class period — from December 30, 2025 (when the allegedly misleading proxy was filed) through the merger closing on March 12–13, 2026
• You voted in favor of the merger based on the proxy representations about $27.20 per share and the potential Special Dividend
• You received $26.40 per share at closing — $0.80 less per share than what the proxy prominently advertised — instead of $27.20
• You are eligible for potential additional payment from a separate $5,004,650 Contingent Payment Fund that may be distributed pro rata to IF Bancorp shareholders of record at closing if a specified loan participation is repaid above an unreserved amount — estimated at approximately $1.51 per share if fully paid out
• You suffered a financial loss as a result of receiving less than the merger consideration prominently stated in the proxy

You are likely NOT included if:

• You did not own IF Bancorp stock during the class period (December 30, 2025 through March 13, 2026)
• You purchased shares after the merger closed and IROQ was delisted from Nasdaq
• Your IF Bancorp shares were held in a fund and you have no direct shareholder standing

What IF Bancorp Shareholders Are Seeking in This Lawsuit

The plaintiffs are not seeking a class action settlement at this stage — this lawsuit was just filed and is in its earliest phase. The class action is brought for violations of Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 14a-9, which prohibits proxy statements from containing false or misleading statements of material fact.

What shareholders are asking the court to find: that the board knew the $27.20 per share figure and the Special Dividend were not realistically achievable at the time the proxy was sent, and that they omitted or misrepresented that risk to secure shareholder approval of the merger. The proxy was negligently prepared and, as a result, contained untrue statements of material fact or omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation.

Damages in securities proxy cases typically represent the difference between what shareholders were promised and what they actually received — in this case, at minimum $0.80 per share, multiplied across all class members. No settlement amount has been established. No claim form exists yet. The court must first appoint a Lead Plaintiff, then certify the class, before the case moves toward trial or resolution. If you are a shareholder who wants to understand your options in this investment class action settlement process or pursue an individual claim, consulting a securities class action attorney now is the right move.

What IF Bancorp Shareholders Should Do Right Now

You do not need to do anything to remain a class member at this stage — but there is one time-sensitive step that matters.

1. If you want to serve as Lead Plaintiff, act before June 29, 2026. Investors who purchased or otherwise acquired IF Bancorp securities during the class period have until June 29, 2026, to ask the Court to appoint them as Lead Plaintiff for the class. The Lead Plaintiff is the shareholder who suffered the largest loss and who directs the litigation on behalf of all class members.
2. Gather your brokerage records. Pull your IF Bancorp trade confirmations, account statements, and any proxy voting records from the December 2025–March 2026 period. These documents establish your losses and your standing in the class.
3. Save the proxy materials you received. The December 30, 2025 definitive proxy and any supplemental proxy communications you received are central evidence in this case.
4. Consult a securities attorney for a free legal consultation if you suffered a meaningful loss and want to evaluate whether seeking Lead Plaintiff status — which comes with no out-of-pocket cost — makes sense for your situation.
5. Monitor the PACER docket for Case No. 26-cv-04873 in the Northern District of Illinois for all court filings and scheduling orders as this case develops.

IF Bancorp and ServBanc Merger Timeline

Milestone	Date
IF Bancorp shareholders vote to approve sale of company	November 25, 2024
IF Bancorp and ServBanc Holdco enter merger agreement	October 29, 2025
IF Bancorp files 8-K announcing merger ($27.20/share)	October 30, 2025
Board authorizes definitive proxy (Schedule 14A) filed with SEC	December 30, 2025
First shareholder lawsuits filed in New York over proxy	January 2026
IF Bancorp issues supplemental proxy disclosures	January 2026
IF Bancorp shareholders vote to approve merger	February 3, 2026
IF Bancorp files 8-K disclosing $7M loan reserve agreement	March 10, 2026
Merger closes; shares convert to $26.40 cash; IROQ delisted	March 12–13, 2026
Pomerantz LLP files class action, Case No. 26-cv-04873	April 28, 2026
Lead Plaintiff deadline	June 29, 2026
Class certification and further proceedings	TBD — case in early stage

Frequently Asked Questions

Is there a class action lawsuit against IF Bancorp and ServBanc over the merger?

 Yes. Pomerantz LLP has filed a class action in the U.S. District Court for the Northern District of Illinois, Case No. 26-cv-04873, alleging that IF Bancorp’s board violated Sections 14(a) and 20(a) of the Securities Exchange Act of 1934 by sending a false and misleading proxy to solicit shareholder votes for the ServBanc merger.

Do I need to do anything right now to be included in the lawsuit?

Most shareholders are automatically included in the class and do not need to act immediately. However, if you want to be appointed Lead Plaintiff — the shareholder who controls the direction of the litigation — you must apply to the court by June 29, 2026. Missing that date does not remove you from the class, but it closes the Lead Plaintiff window permanently.

Why did shareholders only receive $26.40 per share instead of $27.20?

 Each IF Bancorp share was converted into $26.40 in cash at closing because IF Bancorp’s tangible common equity fell below the $77.8 million minimum threshold after a $7 million loan reserve was required by ServBanc. Plaintiffs allege there was no meaningful likelihood that the tangible common equity would exceed the merger consideration threshold — and that this was known before shareholders voted.

Can I still receive the Special Dividend?

 Possibly, in part. A separate $5,004,650 Contingent Payment Fund was created that may be distributed pro rata to IF Bancorp shareholders of record at closing if a specified loan participation is repaid above an unreserved amount, estimated at approximately $1.51 per share if fully paid out. That payout is not guaranteed and depends on loan repayment performance.

When will a settlement be reached in the IF Bancorp class action? 

TBD — this lawsuit was filed in late April 2026 and is in its earliest stage. The court first needs to appoint a Lead Plaintiff, then certify the class. Securities proxy cases like this one typically take one to three years to resolve through settlement or trial.

Can I file my own lawsuit against IF Bancorp’s board instead of staying in the class?

 Yes. Shareholders with significant losses can opt out of the class action and pursue individual claims. This is typically worth evaluating with a class action lawsuit attorney if your loss from the $0.80 per share shortfall — multiplied by your share count — is meaningful.

How will I know when the IF Bancorp lawsuit settles?

 If a settlement is reached, class members who held IROQ shares during the class period will receive written notice from the settlement administrator at their address of record with their brokerage. You can also monitor Case No. 26-cv-04873 on PACER and check AllAboutLawyer.com for updates.

Sources & References

• PR Newswire: Pomerantz Law Firm Announces the Filing of a Class Action Against ServBanc Holdco, Inc., ServBank, National Association, IF Bancorp, Inc., and its Board of Directors, May 7, 2026 — prnewswire.com

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Securities class action outcomes depend on specific facts, court rulings, and applicable law. The Lead Plaintiff deadline is June 29, 2026 — consult a qualified securities attorney promptly if you believe you have suffered losses as an IF Bancorp shareholder.

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against the official court docket, SEC EDGAR filings, Nasdaq Corporate Actions records, and the Pomerantz LLP press release dated May 7, 2026. Last Updated: May 12, 2026