Late last year, Norges Bank Investment Management (NBIM), Norway's sovereign wealth fund, announced that it would be leading a class action lawsuit related to the collapse of Silicon Valley Bank (SVB). In a recent court filing, the investors expanded their lawsuit to not only include SVB's board and its executives, but also the bank's auditor and the investment banks that helped it raise money.
The lawsuit named accounting firm KPMG and four Wall Street banks — Goldman Sachs, Bank of America, Keefe, Bruyette & Woods, and Morgan Stanley. The investors allege that they all "utterly failed in their role as gatekeepers," claiming a loss of more than $24 billion in market value. Presenting interviews with unnamed former employees, the lawsuit argues that SVB "suffered from rampant weaknesses in its controls" and that executives failed to act even after employees had raised concerns.
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