On March 14, a class action lawsuit was filed against New York-based crypto-friendly bank Signature Bank. and former Chief Executive Joseph DePaolo, Chief Financial Officer Stephen Wyremski, and Chief Operating Officer Eric Howell, according to Reuters.report by accusing them of committing fraud
Shareholders have accused The bank claims to have “Financial strength” just three days before state regulators ordered the closure. The lawsuit seeks compensation for shareholders who held shares between March 2 and 12, 2023.
The lawsuit was filed in federal court in Brooklyn. By shareholders led by Matthew Schaeffer, the plaintiffs claim Signature Bank concealed the risk of regulatory closure. by making false or misleading statements about the health of banks The aim was to assuage fears arising from problems facing Silicon Valley banks, which were shut down by the Federal Deposit Insurance Corp two days before Signature Bank.
Earlier, Signature Bank made a statement claiming to be able to respond. “Every customer needs” and has sufficient funds and liquidity during the “Challenging times” and strong financially. These statements are believed to be a concealment of the true financial status of the bank.
Regulators in the United States will offer full compensation to Signature Bank and Silicon Valley Bank depositors regardless of their account balances. However, the same protections will not extend to shareholders.
decision to close the bank It was born out of cooperation with the Federal Reserve to protect the US economy. and increase public confidence in the banking system According to a statement released by the Federal Reserve on March 12
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