Silicon Valley Bank Hit With First Shareholder Fraud Lawsuit Over Collapse
- Securities suit names CEO Becker and CFO Beck as defendants
- Claims center on failure to disclose interest rate risks
Customers wait in line outside of a Silicon Valley Bank branch in Wellesley, Mass., on March 13.
Photographer: Sophie Park/BloombergThis article is for subscribers only.
Silicon Valley Bank was hit with its first of what will likely be many securities-fraud lawsuits by shareholders, accused of failing to warn of risks to its business model.
The securities class action was filed on behalf of Chandra Vanipenta, who bought SVB shares at what he argues were artificially inflated prices due to false statements made by SVB Chief Executive Officer Greg Becker and Chief Financial Officer Daniel Beck.