A plaintiff’s law firm filed a putative class action on Tuesday against Signature Bank, which was seized by New York regulators on Sunday, and its directors and officers, accusing the defendants of making false and misleading statements.
The lawsuit comes a day after a similar shareholder lawsuit was filed against SVB Financial Group, whose unit Silicon Valley Bank was also taken over by regulators after a surge in deposit withdrawals.
The complaint i Matthew Schaeffer v. Signature Bank, Joseph DePaolo, Stephen Wyremski and Eric Howellfiled in US District Court in Brooklyn, states that the bank on March 2 issued a news release that its average balance had increased since the beginning of the year and was followed by an announcement on Thursday that claimed that it was in a strong financial position. .
Mr. DePaolo was the bank̵
7;s managing director, Mr. Wyremski its chief financial officer and senior vice president and Mr. Howell its chief financial officer, as of Sunday.The lawsuit alleges violations of federal securities laws and seeks class action and damages.
The suit was filed by New York-based Rosen Law Firm PA, which is inviting additional plaintiffs.
Signature declined to comment on the lawsuit.
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