NEW YORK, May 3, 2023 /PRNewswire/ -- PomerantzLLP is investigating claims on behalf of investors of SVB Financial Group ("SVB" or the "Company") (NASDAQ: SIVB). Such investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, ext. 7980.
The investigation concerns whether SVB and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On March 8, 2023, the Bank announced its intention to shore up capital after losses on its securities portfolio and a slowdown in funding. Specifically, the Bank disclosed that it would incur a loss of $1.8 billion on the sale of $21 billion worth of securities. The Bank also announced its intention to secure over $2 billion in funds, comprising $500 million from General Atlantic, a private equity firm, and $1.75 billion via a public offering.
On this news, SVB's stock price fell $161.79 per share, or 60.41%, to close at $106.04 per share on March 9, 2023.
Then, on March 9, 2023, Markets Insider published an article entitled "SVB plummets 60% after higher interest rates spark billions in losses on a $21 billion bond portfolio." The article detailed the challenges that the Bank faced, including the extent to which its losses were a consequence of surging interest rates, its "ongoing decline in deposits" and "the fact that it mainly lends to venture capital and private tech companies that often rely on the IPO market[.]"
On March 10, 2023, trading in SVB's shares were halted. That same day, the California Department of Financial Protection and Innovation took over the Bank after it tried and failed to find a buyer. SVB's $175 billion in customer deposits were transferred to the Federal Deposit Insurance Corporation.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
rswilloughby@pomlaw.com
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
