Shareholders of the collapsed Silicon Valley Bank (SVB) have filed a class action lawsuit against the institution, its CEO Greg Becker, and CFO Daniel Beck, alleging violations of securities laws by concealing the bank’s vulnerability to a bank run.
The shareholders claim in a complaint (pdf) filed Monday in federal court in San Jose, California that SVB and its executives failed to disclose how rising interest rates would undermine the bank’s business model and leave it worse off than banks with different client bases.
