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The
complaint asserts claims under the federal securities laws and
alleges the offer documents contained material misstatements and
omissions, the Wall Street giant said.
Goldman added the lawsuit, filed on April 7 in the U.S. District
Court for the Northern District of California, seeks
compensatory damages in unspecified amounts.
On March 17, SVB Financial Group filed for a court-supervised
reorganization under Chapter 11 bankruptcy protection to seek
buyers for its assets, days after its former unit Silicon Valley
Bank was taken over by U.S. regulators.
Financial stocks have lost billions of dollars in value in the
aftermath of the collapse of Silicon Valley Bank and Signature
Bank and saw nervous depositors flee to larger 'too-big-to-fail'
institutions with their capital.
On March 14, SVB said Goldman Sachs was the acquirer of a bond
portfolio on which it booked a $1.8 billion loss, a transaction
that set in motion the failure of the bank.
The loss on the portfolio was the reason SVB, a
technology-focused lender which did business as Silicon Valley
Bank, attempted a $2.25 billion stock sale earlier that month
using Goldman Sachs as an adviser.
(Reporting by Manya Saini in Bengaluru; Editing by Krishna
Chandra Eluri)
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