The Silicon Valley Bank (SVB) shareholders are now in the limelight just days after the SVB collapse rocked the market. As per updates, the collapsed Silicon Valley Bank’s shareholders have reportedly sued the SVB Financial Group and two top executives, the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) over allegations of fraud.
According to a Reuters report, the SVB’s shareholders have accused the three mentioned parties of “concealing how rising interest rates would leave its Silicon Valley Bank unit, which failed last week, ‘particularly susceptible’ to a bank run.”
The report adds that the proposed class action against the Silicon Valley Bank’s CEO Greg Becker and CFO Daniel Beck was filed in a federal court in San Jose, California. While more details are yet to come to light, the proposed class action reportedly appeared to be the first of many likely lawsuits over the collapse of the Silicon Valley Bank.
The SVB collapse has sent shock waves throughout the US Banking sector and the world economy. Soon after the SVB collapsed, another bank based out of New York, the Signature Bank also collapsed, leaving many to wonder about what exactly was happening in the banking space.
As per the report, before the collapse, the SVB had an estimated $209 billion of assets and $175.4 billion of deposits. The failure of the Silicon Valley Bank to continue its operations also point towards one of the largest US bank failure since the Lehman Brothers bankruptcy during the 2008 financial crisis.