SVB Financial Group (SIVB) investigation:

The investigation focuses on SVB’s statements about its risk management, liquidity and general financial condition. As late as February 24th, 2023, the SVB repeatedly claimed “[w]We have implemented a risk management framework to identify and manage our risks.”

SVB’s representation was seriously questioned on March 8, 2023, when the company announced measures to strengthen its liquidity. SVB announced that it has sold substantially all of its available-for-sale securities portfolio, resulting in an after-tax loss of approximately $1.38 billion in the first quarter. The company also announced plans to offer $1.25 billion in common stock and $500 million in preferred stock.

These events caused the price of SVB stock to plunge $161.79, or 60%, on March 9, 2023, wiping out over $9.5 billion in shareholder value in a single day. Then, on March 10, 2023, SVB’s wholly owned subsidiary, Silicon Valley Bank, was shut down by the California Department of Treasury Protection and the Federal Deposit Insurance Corporation was appointed as receiver. The previously announced share offerings have ended.

Most recently, on March 12, 2023, forbes reports that: (1) “[t]The sudden free fall is unlikely to surprise the SVB board;” and (2)”[i]Over the past 15 months, as top insiders exercised options and sold shares, SVB has operated without a full-time chief risk officer and the number of risk committee meetings on the board has more than doubled.”

“We are focused on investor losses and whether SVB lied about the adequacy of its risk management framework given its focus on large uninsured short-term depositors and longer-term bond investments,” said Reed Kathrein, the partner at Hagens Berman who led the investigation.

If you have invested in SVB and are suffering significant losses or know that…