NEWTOWN, Pa., March 09, 2023 (GLOBE NEWSWIRE) -- The law firm of Edelson Lechtzin LLP is investigating securities fraud claims on behalf of all purchasers and holders of SVB Financial Group (“SVB Financial” or the “Company”) (NASDAQ: SIVB) common stock and other SVB securities.
Investors in SVB Financial common stock or bonds who wish to pursue claims to recover investment losses arising from the Company’s false and misleading statements and material omissions and/or pursue corporate governance reforms should contact Edelson Lechtzin LLP, toll free at 1-844-696-7492, or by e-mail at elechtzin@edelson-law.com or medelson@edelson-law.com. More information is available HERE.
Background on SVB Financial Group
SVB Financial Group is a diversified financial services company, as well as a bank holding company and a financial holding company. SVB Financial is incorporated in Delaware and maintains its headquarters in Santa Clara, California. Through its various subsidiaries and divisions, SVB Financial offers a diverse set of banking and financial products and services to support clients of all sizes and stages throughout their life cycles.
The Securities Fraud Claims
During the relevant time period, the Company made materially false and misleading statements concerning deposits with high cash burn companies, claiming that such depositors had “off balance sheet” assets that could replenish deposit cash as it is withdrawn. However, a high percentage of SVB Financial’s high cash burn depositors were unable to replenish deposits. The draw-down of customer accounts forced SVB Financial to sell bonds. Due to rising interest rates, SVB Financial realized significant losses in their bond sales. Additionally, the Company claimed that it had “de-risked” its loan business over time. This appears to be untrue.
Shares of SVB Financial plummeted after the company announced a $1.75 billion share sale on March 9, 2023, as the Company battled rapidly increasing cash burn due to declining deposits from startups struggling with a venture capital funding drought. In a letter to investors, CEO Greg Becker explained that the funds are needed because the bank expects “continued high interest rates, pressured public and private markets, and elevated cash burn levels from our clients as they invest in their businesses.” The Company lowered its outlook for current-quarter and full-year deposits, net investment income, net interest margin and expenses, while raising full-year core free income guidance.
On this news the price of SVB Financial common stock plunged from $267.83 per share on March 8, 2023, to close at $106.04 per share (a decline of $161.79 per share) on March 9, 2023 – a drop of 60.4% – on unusually high trading volume.
For more information, please contact:
Marc H. Edelson, Esq.
Eric Lechtzin, Esq.
EDELSON LECHTZIN LLP
411 S. State Street, Suite N-300
Newtown, PA 18940
Phone: 844-696-7492 or 215-867-2399 ext. 1
Email: elechtzin@edelson-law.com
Web: www.edelson-law.com
About Edelson Lechtzin LLP
Edelson Lechtzin LLP is a national class action law firm with offices in Pennsylvania and California. In addition to cases involving securities and investment fraud, our lawyers focus on class and collective litigation in cases alleging violations of the federal antitrust laws, employee benefit plans under ERISA, wage theft and unpaid overtime, consumer fraud, and dangerous and defective drugs and medical devices.
Source:
Edelson Lechtzin LLP2023 GlobeNewswire, Inc., source Press Releases
SVB FINANCIAL GROUP 
