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SIVB.US
id: 615

Silicon Valley Bank (SIVB) Misconduct Case

N.D. California
Court
16 Jun 2021
Class period Start
10 Mar 2023
Class period End
12 May 2023
Lead Plaintiff motion deadline
  • ·#SiliconValleyBank (SIVB) failed.
  • ·#SVB’s stocks dramatically lost in value, seriously damaging investors.
  • Investors suspect #SVB, its Leaders & Service Providers of failing to provide a sufficient risk management system.
On March 8, 2023, #SVB stunned the market by announcing its intention to raise almost $2 billion and incur a $1.8 billion loss on the sale of $21 billion worth of securities.

On this news, the price of #SVB’s stock dropped over 60%, seriously damaging investors.
  • In the midst of these losses, it was revealed that SVB's CEO, had stated in a letter to investors, “while VC (venture capital) deployment has tracked our expectations, client cash burn has remained elevated and increased further in February, resulting in lower deposits than forecasted.”
  • As a result of this news, various venture capital funds, including Peter Thiel's Founders Fund, had advised their portfolio companies to withdraw their funds from #SVB accounts, causing a run on the bank.
  • Later, on March 10, 2023, Silicon Valley Bank (SVB) failed after a bank run on its deposits. The DFPI revoked its charter and transferred the business into receivership under the Federal Deposit Insurance Corporation (FDIC) in the second-largest bank failure in U.S. history.
According to the consensus among the market and media, the primary factors contributing to the bank's downfall were the over-reliance on the technology and venture sectors for business and an insufficient risk management system.

Taking all the events, the market and regulators' responses, and the revealed facts into account, Investors have reasons to suspect the Bank, its Leaders, and its Service Providers of failing to provide a proper system of risk management and information disclosure to protect their business, customers, and shareholders, which led to significant losses the latter and, as a consequence, the breach of fiduciary duties by the Bank's Leaders.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Fraud
Failure to Disclose
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Government Authority
Investment Bank
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08 March 2023
Filing date
13 March 2023
Lead Plaintiff Deadline
12 May 2023
Collecting participants…