SVB Investor’s Securities Fraud Claims Against KPMG Given Green Light

On August 5, 2026, Judge Noël Wise of the Northern District of California issued a significant ruling for investors in In re SVB Financial Group Securities Litigation, the class action arising from the March 2023 collapse of Silicon Valley Bank.

The Court granted Lead Plaintiffs Sjunde AP-Fonden (AP7) and Norges Bank’s motion to amend the complaint to add a Section 10(b) securities fraud claim against KPMG LLP, SVB’s longtime outside auditor and denied KPMG’s motion to dismiss that claim in full. Those claims are based on approximately 300 new allegations drawn from KPMG’s own workpapers and internal files produced in discovery. In denying KPMG’s motion, the Court held that Plaintiffs adequately alleged that KPMG acted with scienter. Among other facts, the Court pointed to escalating red flags KPMG confronted regarding SVB’s ability to hold its massive held-to-maturity securities portfolio to maturity—a portfolio that grew 500% in a single year and whose unrealized losses ultimately approached 95% of SVB’s shareholders’ equity.

KPMG now faces both Securities Act and Exchange Act fraud claims as the case proceeds toward class certification and trial.

KTMC serves as co-lead counsel with a team that includes Sharan Nirmul, Richard Russo, Jamie McCall, Sarah Damiani, Nathaniel Simon, Lyndsey Campbell and Mariama Barry. Partner Sharan Nirmul argued the motions on July 29, 2026.