SVB Hit With First Securities Fraud Suit Over Bank’s Failure (1)

Silicon Valley Bank was hit with its first of what will likely be many securities-fraud lawsuits by shareholders, accused of failing to warn of risks to its business model.

The securities class action was filed on behalf of Chandra Vanipenta, who bought SVB shares at what he argues were artificially inflated prices due to false statements made by SVB Chief Executive Officer Greg Beckerand Chief Financial Officer Daniel Beck.

SVB Financial Group, the bank’s parent, filed multiple quarterly reports over the last two years that failed to disclose the risk that interest rate hikes posed to the bank, ...