NEW YORK, May 04, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors in SVB Financial Group (“SVB” or the “Company”) SIVB. Those investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, extension 7980.

The investigation concerns whether SVB and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.

[Click here for information about joining the class action]

On March 8, 2023, the bank announced its intention to shore up capital following losses in its securities portfolio and a slowdown in funding. Specifically, the bank announced that it would incur a $1.8 billion loss on the sale of $21 billion worth of securities. The bank also announced its intention to raise over $2 billion in funds, including $500 million from General Atlantic, a private equity firm, and $1.75 billion through a public offering .

As a result of this news, SVB’s share price fell $161.79 per share, or 60.41%, to close on March 9, 2023 at $106.04 per share.

Then, on March 9, 2023, Markets Insider published an article titled “SVB plummets 60% after higher interest rates caused billions in losses on a $21 billion bond portfolio.” The article detailed the challenges the bank faced, including the extent to which its losses were a result of rising interest rates, its “continued decline in deposits” and “the fact that it primarily lends to venture capital and private technology companies, which are often dependent on the IPO market[.]”

Trading in SVB shares ceased on March 10, 2023. On the same day, the California Department of Financial Protection and Innovation took over the bank after unsuccessfully trying 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 one of the leading law firms in the areas of corporate,…