SAN FRANCISCO, March 13, 2023 (GLOBE NEWSWIRE) — Hagens Berman urges SVB Financial Group (NASDAQ: SIVB) investors who suffered substantial losses to submit your losses now.
SVB Financial Group (SIVB) Investigation:
The investigation focuses on SVB’s statements about its risk management, liquidity and overall financial condition. As recently as Feb. 24, 2023, SVB has repeatedly claimed “[w]e have implemented a risk management framework to identify and manage our risk exposure.”
SVB’s representation came into serious question on Mar. 8, 2023, when the company announced moves to boost its liquidity. 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. The company also announced plans to offer $1.25 billion of stock and $500 million of preferred depositary shares.
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.
Most recently, on Mar. 12, 2023, Forbes reported that: (1) “[t]he sudden freefall is likely not a surprise to the SVB board;” and (2) “[i]n the past 15 months, as top insiders cashed options and sold shares, SVB operated without a full-time chief risk officer and the number of board risk committee meetings more than doubled.”
“We’re focused on investors’ losses and whether SVB lied about the sufficiency of its risk management framework given its concentration in large uninsured short-term depositors and longer-duration bond investments,” 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 [email protected]
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
