Friday 4 August 2023

Silicon Valley Bank shareholder sues bank group over stock

(KRON) -- A Silicon Valley Bank shareholder is suing the bank group in an effort to recover stocks that were held in reliance on executive misstatements.

Cotchett, Pitre and McCarthy LLP filed a lawsuit on behalf of Jane Lodato for alleged breach of fiduciary duty, fraud and deceit, negligent misrepresentation and constructive fraud. The complaint alleges that SVB hid the bank's severe liabilities and risks for years despite citations dating back to 2019 from the Federal Reserves Bank of San Francisco.

Lodato was a former employee at SVB and repeatedly planned to sell her shares of stock but she was persuaded to hold onto those shares. The complaint alleges that Lodato held over 1,400 shares that were worth $755 each at the time, and are now worth around 17 cents each.

“As alleged in the complaint, SVB and its executives had a duty to accurately portray the risks and realities of the Bank—instead, they hid their mistakes in favor of profit, which came at the expense of our client and her now lost investment," said Gia Jung, lawyer at Cotchett, Pitre and McCarthy.



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