Proposed Class-Action Filed Against Signature Bank And Former Execs For Fraud

Signature Bank (SBNY.O) and three former top executives were sued on Tuesday by shareholders who accused the New York bank of fraudulently proclaiming it was financially strong a mere three days before it was seized by a state regulator.

The proposed class action against Signature and its former chief executive officer Joseph DePaolo, chief financial officer Stephen Wyremski and chief operating officer Eric Howell was filed in the federal court in Brooklyn.

It seeks unspecified damages for shareholders between March 2 and 12 when New York’s Department of Financial Services took over Signature, two days after the Federal Deposit Insurance Corp seized Silicon Valley Bank.