Goldman Sachs & KPMG Sued Over SVB’s Collapse
We report that Goldman Sachs and KPMG have been dragged into a civil lawsuit alleging they were linked to the collapse of a firm called Silicon Valley Bank. The bank is also named as one of 11 defendants in the case, which was filed on Tuesday at a New York state court.
The complaint, filed by the law firm Elliot Greenleaf PC, accuses the defendants of “knowingly participating in tortious conduct” and of “tortiously interfering with [SVB’s] business relationships, contracts and rights."
The plaintiff alleges that Goldman Sachs began conspiring with other investment banks to reduce the number of deals they supported in the venture capital sector, including prevented any new investments in SVB. This would have enabled Goldman Sachs to gain a competitive edge in the market.
KPMG allegedly was complicit in this plan by aiding and abetting others who had an interest in causing a decline in SVB's market position. The lawsuit alleges KPMG also provided false information about SVB's business operations which could have damaged its reputation.
The plaintiff is now asking for damages estimated at $1 billion or more.