Employee Retaliation Lawsuit Filed Against Citizens Republic Bancorp

SOUTHFIELD, Mich., March 24 /PRNewswire/ -- Plaintiff John D. Schwab, 64, of
Clarkston started working for Citizens in 2002 as Executive Vice President and
Chief Credit Officer at its headquarters in Flint, Michigan. He was recruited
for this position by Citizens President and Chief Executive Officer, William
Hartman. Over six years time, Schwab only received excellent reviews, salary
increases, bonuses, stock options and grants.

In early December 2008 anticipation of receiving $300,000,000 in federal
bail-out or Troubled Assets Relief Program (TARP) funds, Senior Executive
Officers including Schwab were required to sign a waiver of claims against the
United States and Citizens for any changes in compensation, bonus, incentive
and benefit plans.

In mid-December 2008, Ben Laird, a member of Citizens Board of Directors and
Chairman of its Compensation Committee, met with Schwab one-on-one and
informed him of Hartman's demand for a new "guaranteed" four year employment
contract and payment of a special $7,500,000 special bonus.

In 2008, Citizens sustained a loss of $400,000,000 (thus triggering the need
for the $300,000,000 in federal bail out funds) and Hartman received regular
compensation totaling $780,000.

Laird specifically sought Schwab's opinion of Hartman's compensation demands.
Schwab told Laird that Hartman's compensation demands werecompletely wrong and
inappropriate. The Federal bank bail-out statute and regulations provide that
banks receiving TARP funds are specifically restricted as to the amount of
bonuses bank officers may be paid. In that same meeting, Laird also asked
Schwab if he would remain with Citizens should Hartman depart and would he
also consider becoming Citizens CEO. Schwab stated that he would not resign
if Hartman left and that he would commit to remaining at Citizens another 3
years and that he also welcomed being considered as a candidate for the
President/CEO job.

Subsequently, Citizens Board of Directors rejected some of Hartman's
compensation demands. Further, it was decided that Hartman's tenure as
Citizens President/CEO would end on January 31, 2009, at which time he
[Hartman] would become the Chairperson of Citizens Board of Directors. Hartman
remains Citizens Chairman today. Schwab was interviewed for the position of
President/CEO along with three other candidates. He was told by the Board
search committee that his experience and qualifications matched well with the
President/CEO job requirements. Schwab stated that he was willing to remain
with Citizens for an additional three to five years. Cathleen Nash was
elected the President/CEO to succeed Hartman, and Schwab gladly agreed to
assist her in any way, especially through the credit crisis.

On Thursday, January 29, 2009 (only two days before Hartman's scheduled
termination as Citizens President/CEO), Hartman summoned Schwab to his office
and told him "you're going to retire" and that he [Schwab] had "undermined"
him [Hartman]. Schwab's employment with Citizens ceased immediately after that
meeting.

The following counts were filed in the Circuit Court for the County of
Genesee:
COUNT I: Wrongful discharge in violation of Michigan Public Policy. Schwab was
fired in retaliation for expressing his opposition to Hartman's compensation
demands which included, Hartman's demand for the immediate payment of a
special $7.5 million bonus. The payment of this special bonus would have
violated the federal TARP statutes and regulations, which place limits on each
bank participant's ability to pay excessive executive compensations. See 31
CFR section 30.0 et seq. Hartman fired Schwab in retaliation for him [Schwab]
having opposed his [Hartman's] excessive and illegal compensation demands,
specifically the $7.5 million special bonus.

COUNT II: Violation of Elliott-Larsen Civil Rights Act, MCL 37.2201 et seq -
Age Discrimination. Schwab is 64 years old when Hartman told him that he was
being fired, he said that Schwab was to "retire" and upon his firing, Citizens
announced Schwab's retirement. At no time did Schwab indicate he was
retiring, in fact, he advised Citizens that he intended to work 3 to 5 years
longer.

The Law Offices of Sommers Schwartz, P.C. are located at 2000 Town Center,
Suite 900. To reach Sommers Schwartz, P.C., in Southfield, Michigan, phone
248-355-0300.

MEDIA NOTE: 11:00 a.m. news conference on Tuesday, March 24, 2009 in the
Sommers Schwartz board room, 9th floor.
***Plaintiff John D. Schwab and his attorney Daniel Swanson of Sommers
Schwartz, P.C. will address the media.

SOURCE Mort Meisner Associates

Mort Meisner, +1-248-545-2222, or Kristin Schenden, +1-248-895-5638, both of
Mort Meisner Associates