Legal Bombshell: SVB Collapse Triggers Legal Action Against Goldman Sachs and KPMG
In the San Francisco Federal court, KPMG sued the bank auditor and underwriter of Silicon Valley Bank. The collapse of the crypto-friendly banking crisis just triggered legal trouble.
Goldman Sachs Group Inc, Morgan Stanley, And CO., With KPMG LLP as the Silicone Valley bank banks’ auditor and underwriters, were Sued for the misleading statements. This SVB crash Bank of America Corp was also included in all this trouble.
Key Takeaways:
- KPMG is sued in court for misleading statements regarding Silicon Valley Bank’s position, liquidity, and balance sheet strength.
- Other defendants include the bank’s CEO and executives, Bank of America, Morgan Stanley, and Goldman Sachs.
- All underwriters allegedly issued misleading statements that led to the bank’s collapse, and the defendants concealed the risk.
- The Silicon Valley banks have filed for Chapter 11 bankruptcy for not following bonds and interest rates.
- KPMG’s alleged liability was signed off a week before the annual report on the bank’s collapse in 2022.
Silicone Valley Bank Collapse In The Court:
A complaint was filed in the San Francisco Federal Court against the auditor and underwriters of Silicon Valley Bank. Silicone Valley Bank CEO Greg Becker and other executives are the defendants in this case.
Further, the case was explained by the CEO of Silicone Valley Bank tried to misrepresent the position, liquidity, and balance sheet strength in the market. However, the auditor, executive, and underwriters allegedly concealed the magnitude of the risk. And all this makes them face the current risk.
Till now, KPMG, Bank of America, Morgan Stanley, Goldman Sachs, and other defendants Haven’t commented on the case.
Following the recent tweet by BQ Prime;
The lawsuit claim, all the underwriters issued a misleading on the bank’s stock offering, ultimately leading to the collapse. Hence it was also mentioned that all the facts are untrue.
Chapter 11 bankruptcy was filed by the group of financial Silicone Valley banks as they didn’t follow the bonds as didn’t spike the interest rates. Although securities, capital funds, and general partners of Silicone Valley bank are highlighted as needing to fill the entities.
Hence, the lawsuit stated that KPMG’s alleged liability was signed off just a week before the 8th March market closing date, the annual report about the silicon valley bank collapse in 2022.