Kirby McInerney LLP announced a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired SVB Financial Group securities during the period from June 16, 2021, through March 10, 2023 (the class period). Investors have until May 12 to apply to the court to be appointed as lead plaintiffs in the lawsuit.
SVB is the holding company for Silicon Valley Bank, a commercial bank that served emerging growth and middle-market growth companies in targeted niches, focusing on the technology and life sciences industries.
The lawsuit alleges that, throughout the class period, the defendants issued materially false and/or misleading statements and/or failed to disclose to investors (1) the risks presented by impending rising interest rates, (2) that an environment with high interest rates would be worse off for SVB than banks that did not cater to tech startups and venture capital-backed companies; and (3) that it was particularly susceptible to a bank run if its investments were negatively affected by rising interest rates.
