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NORTHEAST BANCORP STOCK PURCHASER FILES SUIT

 PHILADELPHIA, Jan. 4 /PRNewswire/ -- A purchaser of common stock of Northeast Bancorp (NASDAQ: NBIC) has filed a suit in federal District Court in Connecticut alleging that Northeast Bancorp and three of its officers and directors violated Section 10(b) of the Securities Act of 1934.
 Specifically, plaintiff William Strizever, who is represented by the firm of Greenfield & Chimicles of Haverford, Pa., alleges in his complaint that Northeast Bancorp and its principal officers, Frank J. Kugler, Peter V. Young and George R. Kubarek, failed to disclose and misrepresented to purchasers of Northeast Bancorp common stock that defendants had failed to fulfill their obligations under a March 16, 1992, agreement with federal regulators and that defendants' motivation in seeking a merger partner for Northeast Bancorp was to forestall or undo a likely issuance of a regulatory cease-and-desist order. The complaint alleges that, as a result of material misrepresentations, the price of Northeast Bancorp common stock was inflated artificially.
 Strizever's complaint seeks certification of his action as a class action on behalf of all purchasers of Northeast Bancorp common stock from Aug. 16, 1992, through Dec. 28, 1992. On Dec. 28, 1992, it was announced that Northeast Bancorp would merge with First Fidelity Bancorporation (NYSE: FFB) in a transaction pursuant to which Northeast Bancorp shareholders will receive $4 per share in an exchange of stock, after it was rumored days earlier that Shawmut National Bank (NYSE: SNC) had made an offer of $9 to $12 per share. Northeast Bancorp's announcement disclosed for the first time, attorney for the plaintiff said, that defendants expected Northeast Bancorp to become subject to a cease-and-desist order in January 1993.
 /delval/
 -0- 1/4/93
 /CONTACT: Nicholas E. Chimicles of Greenfield & Chimicles, 215-642-8500, for Northeast Bancorp/
 (NBIC FFB SNC)


CO: Northeast Bancorp; First Fidelity Bancorporation; Shawmut National
 Bank ST: Connecticut IN: FIN SU: TNM


MK-LJ -- PH017 -- 1374 01/04/93 14:43 EST
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Publication:PR Newswire
Date:Jan 4, 1993
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