Signature Bank (SBNY) Misled Investors Regarding its Business Prospects
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Signature Bank (NASDAQ: SBNY) securities between March 2, 2023 and March 12, 2023, for violations of the Securities Exchange Act of 1934. Signature Bank purports to be a “New York-based full-service commercial bank with 40 private client offices located throughout the metropolitan New York area, as well as those in Connecticut, California, Nevada and North Carolina.”
According to the complaint, on March 2 and 9, 2023, defendants touted the stability of its business model, diversified deposit mix, and high level of capital. These statements were false, however. On March 12, 2023, the New York Department of Financial Services (“DFS”) took possession of Signature Bank and trading in the Company’s shares were halted, essentially rendering the Company’s shares illiquid and valueless given the bank’s failure.
Defendants failed to disclose that Signature Bank did not have the strong fundamentals that it represented itself as having in the days immediately prior to its takeover, or otherwise took action that left it susceptible to a takeover by the DFS, and as a result, it became a target for regulatory action by the DFS.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Signature Bank. Shareholders who want to act as lead plaintiff for the class must file their papers by May 15, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.