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Globe Newswire 19-Mar-2023 7:00 AM
SAN DIEGO, March 19, 2023 (GLOBE NEWSWIRE) --
The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired SVB Financial Group (NASDAQ:SIVB) securities between June 16, 2021 and March 10, 2023, for violations of the Securities Exchange Act of 1934. SVB purports to be "a diversified financial services company, as well as a bank holding company and a financial holding company."
What Now: Similarly situated shareholders may be eligible to participate in the class action against SVB. Shareholders who want to act as lead plaintiff for the class must file their papers by May 8, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: SVB Financial Group (SIVB) Failed to Disclose to Investors That Rising Interest Rates Would Negatively Impact its Business Prospects.
According to the complaint, during the class period, defendants failed to disclose: (1) the risks presented by impending rising interest rates; (2) 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; and (3) that, if its investments were negatively affected by rising interest rates, it was particularly susceptible to a bank run.
On March 8, 2023, the Company announced a stock offering and that it had entered into an agreement with an equity investor to purchase $500 million in a separate private transaction. On this news, the Company's stock lost more than half its value from a closing price of $267.83 per share on March 8, 2023 to $106.04 per share on March 9, 2023. On March 9, 2023, several news outlets speculated on the stock's demise, stating that SVB was impacted by the "Federal Reserve's aggressive campaign to control inflation…" and that "high interest rates spark billions in losses on a $21 million bond portfolio."
On March 10, 2023, trading in SVB's shares was halted and 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 ("FDIC"). The takeover put about $175 billion in customer deposits under the direct control of the FDIC. The failure of SVB was the largest bank failure since the 2008 financial crisis.
Contact us to learn more:
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against SVB Financial Group settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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