
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, October 23, 1993                   TAG: 9310230109
SECTION: BUSINESS                    PAGE: A-6   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

DOMINION NAMED IN SUIT

Some shareholders of former Dominion Bankshares Corp. are receiving notices asking them to decide whether to be part of a lawsuit alleging they were denied dividends when the company was sold.

The suit was filed in U.S. District Court for the Eastern District of Virginia in Richmond by one shareholder, Irving Kas. The defendants are First Union Corp., the Charlotte, N.C., banking company that bought Dominion in March, First Union's Virginia unit and Warner Dalhouse, former chairman of Dominion Bankshares and currently chairman of First Union Corp. of Virginia.

The purpose of the notice was to tell them that they are members of the class of shareholders suing First Union and its Roanoke-based unit, First Union Corp. of Virginia.

Members of the class are investors who held Dominion stock on Nov. 2, 1992, or who purchased Dominion stock between Nov. 12, 1992, and Feb. 26, 1993.

Plaintiffs in the suit contend that First Union should have closed on its acquisition of Dominion by Feb. 26, 1993, when a dividend was due, instead of March 1.

The 35-cent per share dividend was payable to First Union stockholders of record Feb. 26, meaning those who actually held shares on that day. At that time, financially troubled Dominion had suspended its own dividend.

The plaintiffs allege delaying the date on which the acquisition took effect was tantamount to securities fraud.

Former shareholders are being sent a card to return if they do not want to be members of the class. Those who take no action as a result of the mailing will be considered members of the class at the trial.

A person close to the case, who did not want to be identified, said the only reason to opt out of the case would be opposition to the allegations of the lawsuit.

For those who want to pursue the matter, the amount of money involved for each person is too small to pursue individually, which is a rationale for making the complaint a class action suit.

If the plaintiffs win the case, every former Dominion shareholder would be eligible for 58 percent of 35 cents for each Dominion share they held.

Thus, they would be eligible for 20.3 cents an old Dominion share or $20.30 for a lot of 100 shares - less their share of the attorneys fees.

by CNB