SVB parent company, CEO and CFO sued by shareholders for fraud

The lawsuit seeks unspecified damages for SVB investors between June 16, 2021, and March 10, 2023.

Roberto Wakerell-Cruz Montreal QC
Shareholders of SVB Financial Group, the parent company of the now-defunct Silicon Valley Bank, filed a proposed class action lawsuit on Monday against the company and two top executives, accusing them of concealing information regarding interest rate increases and the impact they would have on the bank's susceptibility to a bank run.

The lawsuit, filed in a San Jose federal court, is the first of its kind against the bank, with more expected, according to Reuters.

Silicon Valley Bank had $209 billion in assets and over $175 billion in deposits, making its failure concerning for other banks that cater to wealthy clients, including tech start-ups and venture capital-backed companies.

The lawsuit seeks unspecified damages for SVB investors between June 16, 2021 and March 10, 2023, Reuters reports. 

Federal regulators said on Sunday that customers of the failed bank who have been unable to access their deposits after its seizure last week will, thanks to the feds, be able to access their cash as early as Monday.

"Today we are taking decisive actions to protect the US economy by strengthening public confidence in our banking system. This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth," Federal officials said in a statement Sunday evening.

They said in that statement that taxpayers would not be footing the bill for the losses of the bank.

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