NEW YORK, March 17, 2023 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP announces that 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, Inc. (“SVB” or the “Company”) (NYSE: SIVB) securities during the period from June 16, 2021 through March 10, 2023 (the “Class Period”). Investors have until May 12, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
SVB is the holding company for Silicon Valley Bank, a commercial bank that serves emerging growth and middle-market growth companies in targeted niches, focusing on the technology and life sciences industries.
On March 8, 2023, SVB released a Press Release entitled, “SVB Financial Group Announces Proposed Offerings of Common Stock and Mandatory Convertible Preferred Stock.” (the “March 8 Press Release”). In the March 8 Press Release, the Company announced, in pertinent part, the following: “SVB sold approximately $21 billion of securities, which will result in an after tax loss of approximately $1.8 billion in the first quarter of 2023.” On this news, the price of SVB shares declined by $161.79 per share, or approximately 60.41%, from $267.83 per share to close at $106.04 on March 9, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants issued materially false and/or misleading statements and/or failed to disclose 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; and (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.
If you purchased or otherwise acquired SVB securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-699-1180
https://www.kmllp.com
investigations@kmllp.com
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