SVB Financial, top executives sued by shareholders – report
SVB Financial, its CEO Greg Becker and CFO Daniel Beck have reportedly been sued by shareholders over their failure to disclose how elevated interest rates left Silicon Valley Bank susceptible to a bank run.
This is likely the first of many lawsuits that could emerge after the collapse of Silicon Valley Bank, which led to wider contagion fears in the banking sector.
The proposed class action from shareholders led by Chandra Vanipenta was filed in the federal court in San Jose, California, Reuters reported.
Note that Becker sold almost $3.6M of SVB (SIVB) shares through a trading plan about two weeks before its banking unit failed. CFO Beck also sold ~$575K worth of stock.
SVB (SIVB) is exploring strategic alternatives for the holding company, as well as its SVB Capital and SVB Securities units.
The FDIC is reportedly planning another auction of Silicon Valley Bank assets as no suitors emerged over the weekend.