SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of SVB Financial Group (NASDAQ: SIVB; SIVBP) securities between June 16, 2021 and March 10, 2023, inclusive (the “Class Period”) have until May 12, 2023 to seek appointment as lead plaintiff in the SVB Financial class action lawsuit. Captioned Vanipenta v. SVB Financial Group, No. 23-cv-01097 (N.D. Cal.), the SVB Financial class action lawsuit charges SVB Financial and certain of its top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the SVB Financial class action lawsuit, please provide your information here:
CASE ALLEGATIONS: SVB Financial purports to be “a diversified financial services company, as well as a bank holding company and a financial holding company.”
The SVB Financial class action lawsuit alleges that defendants throughout the Class Period: (i) failed to disclose to investors the risks presented by impending rising interest rates; (ii) failed to disclose to investors that, in an environment with high interest rates, SVB Financial would be worse off than banks that did not cater to tech startups and venture capital-backed companies; and (iii) failed to disclose that, if SVB Financial’s investments were negatively affected by rising interest rates, SVB Financial was particularly susceptible to a bank run.
On March 8, 2023, SVB Financial released a press release entitled “SVB Financial Group Announces Proposed Offerings of Common Stock and Mandatory Convertible Preferred Stock,” announcing that SVB Financial “intends to offer $1.25 billion of its common stock and $500 million of depositary shares . . . in separate underwritten registered public offerings.” SVB Financial also disclosed that it “sold approximately $21 billion of securities, which will result in an after tax loss of approximately $1.8 billion in the first quarter of 2023.” On this news, the price of SVB Financial’s shares fell by more than 60%, damaging investors.
Then, on March 10, 2023, trading in SVB Financial’s shares was halted and remains halted as of the filing of the SVB Financial class action lawsuit. Also that day, the California Department of Financial Protection and Innovation took over SVB Financial after the bank tried and failed to find a buyer. SVB Financial’s deposits were transferred to the Federal Deposit Insurance Corporation. In the order taking possession of SVB Financial, the California Department of Financial Protection and Innovation stated that its findings were that: “(1). The Bank’s liquidity position is inadequate, and it cannot reasonably be expected to pay its obligations as they come due. (2). The Bank is insolvent. (3). The Bank is conducting its business in an unsafe manner due to its present financial condition.”
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired SVB Financial securities during the Class Period to seek appointment as lead plaintiff of the SVB Financial class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the SVB Financial class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the SVB Financial class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the SVB Financial class action lawsuit.
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