Case Background:
This is a federal securities fraud class action lawsuit on behalf of investors who purchased or otherwise acquired Signature Bank (“SBNY”) (NASDAQ: SBNY, SBNYP) securities between January 21, 2021 and March 12, 2023, inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that Defendants lacked even the most basic methods to analyze SBNY’s rapidly shifting risk profile. Contrary to their representations, Defendants did not have adequate methods to analyze the stability of deposits and did not abide by risk or concentration limits. To the contrary, deposits had become highly concentrated in relatively few depositor accounts, including large cryptocurrency deposits—an issue that should have been flagged in SBNY’s financial statements. SBNY’s stress testing and plans to fund operations in case of contingency were also severely deficient. SBNY’s regulators communicated these issues directly to Defendants leading up to and throughout the Class Period—recognizing on multiple occasions that Defendants had failed to remedy them.
Investors began to learn the truth of Defendants’ misrepresentations and omissions of material fact as widespread turmoil hit the cryptocurrency market in 2022, resulting in deposit run-off and calling into question SBNY’s assessment and response to the cryptocurrency deposit risks. During this time period, Defendants again assured investors that SBNY had appropriate risk management strategies and even modeled for scenarios where cryptocurrency deposits were all withdrawn. Investors only learned the true state of SBNY’s business on March 12, 2023, when SBNY was shuttered and taken over by regulators.; and as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On March 24, 2025, the District Court granted Defendants’ Motion to Dismiss the Amended Complaint and dismissed the case. On March 27, 2025, Lead Plaintiffs appealed the dismissal to the United States Court of Appeals for the Second Circuit. The Court heard oral arguments on October 21, 2025, and the appeal is now pending decision before the Second Circuit Court. The appeal is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California. KTMC has recovered over $25 billion for our clients and the classes they represent.