AP7 together with the Norwegian oil fund, NBIM, have been appointed as co-lead plaintiffs in a securities class action case against Silicon Valley Bank, SVB, in Federal court in the United States.
The allegations are that certain of SVB’s executive officers misrepresented and concealed the significant financial and liquidity pressure the bank faced from increasing interest rates and reduction in M&A activity which led to the bank’s collapse. SVB shareholders, which includes AP7 and our savers, suffered significant financial losses.
In August, 2023 AP7 was also named lead plaintiff in the class action against Signature Bank. Despite assurances of the opposite, Signature Bank experienced a significant liquidity crisis in March 2023 resulting in one of the largest bank failures in U.S. history.
Legal actions are one of AP7’s ownership tools to protect the interests of our savers. AP7 takes advantage of the opportunity to pursue litigation through class actions against companies that have violated the law or acted against the interests of shareholders negatively affecting the share price. It is part of the active ownership that claims accountabilitiy from companies and act as a deterrent, as well as recovering losses to compensate shareholders.
Read more about the class action case against Sillicon Valley Bank:
https://docs.justia.com/cases/federal/district-courts/california/candce/3:2023cv01097/409427/82
Read more about the class action case against Signature Bank:
https://law.justia.com/cases/federal/district-courts/new-york/nyedce/1:2023cv01921/494065/51/