On or around 02/16/2024 (Date of last review)
Filing Date: March 13, 2023
According to the Complaint, SVB Financial Group purports to be “a diversified financial services company, as well as a bank holding company and a financial holding company."
On March 10, 2023, the California Department of Financial Protection and Innovation took over SVB after the bank tried and failed to find a buyer. SVB’s deposits were transferred to the Federal Deposit Insurance Corporation. In the order taking possession of SVB, the California Department of Financial Protection and Innovation stated that its findings were as follows: “(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 Complaint alleges that Defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose material facts. Specifically, the Complaint alleges that: (1) the Company failed to disclose to investors the risks presented by impending rising interest rates; (2) the Company failed to disclose to investors that, in an environment with high interest rates, it would be worse off than banks that did not cater to tech startups and venture capital-backed companies; (3) the Company failed to disclose that, if its investments were negatively affected by rising interest rates, it was particularly susceptible to a bank run; (4) as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.
On November 30, 2023, the Court issued an Order consolidating cases and appointing Lead Plaintiff. All future docketing was ordered to be done in the lead case 23-CV-01097. On December 28, the Court issued an Order appointing Lead Counsel.
Lead Plaintiff filed a consolidated amended Complaint on January 16, 2024.
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