SAN FRANCISCO, March 27, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges SVB Financial Group (NASDAQ: SIVB) investors who suffered substantial losses to submit your losses now.
| Class Period: June 16, 2021 – Mar. 10, 2023 | |
| Lead Plaintiff Deadline: May 12, 2023 | |
| Visit: www.hbsslaw.com/investor-fraud/SIVB | |
| Contact An Attorney Now: | SIVB@hbsslaw.com |
| 844-916-0895 | |
SVB Financial Group (SIVB) Securities Fraud Class Action:
While Hagens Berman believes more facts will be developed, the complaint which starts the clock on when investors must move to be a lead plaintiff alleges Defendants made misleading statements and failed to disclose that: (1) SVB faced a high risk of insolvency in the wake of the Federal Reserve’s commencement in 2021 of ongoing interest rate increases; (2) SVB would be worse off in this environment than banks that did not cater to tech-startups and venture capital-backed companies; and (3) SVB’s investments were negatively affected by rising interest rates, making it particularly susceptible to a bank run.
Investors began to learn the truth on Mar. 8, 2023, when SVB revealed that it sold substantially all of its available for sale-securities portfolio that resulted in an after-tax loss of approximately $1.38 billion in Q1 and plans to offer $1.25 billion of stock and $500 million of preferred depositary shares.
Then, on Mar. 9, 2023, the Wall Street Journal and others reported that SVB’s disastrous securities portfolio sales were “directly related to the surge in interest rates over the past year” and “the company’s $21 billion portfolio had a yield of 1.79% and a duration of 3.6 years” while “[t]oday, the 3-year US Treasury note yields 4.7%, a far cry from the levels at which the bank bought the Treasury notes prior to 2022.”
These events sent the price of SVB shares crashing $161.79, or 60%, lower on Mar. 9, 2023, wiping out over $9.5 billion of shareholder value in a single day.
Then, on Mar. 10, 2023, SVB’s wholly owned subsidiary Silicon Valley Bank was closed by the California Department of Financial Protection, and the Federal Deposit Insurance Corporation was appointed as receiver. The previously announced equity offerings were terminated.
“We’re focused on whether SVB hid known risks from investors, and if so recovering as much as possible on their behalf from any bad actors, including those who sold on inside information,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in SVB and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding SVB should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SIVB@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
