US Court Revives Signature Bank Lawsuit
A federal appeals court revived an investor lawsuit over the 2023 collapse of Signature Bank. The court ruled that the FDIC seizure did not strip shareholders of their right to pursue fraud claims against former executives and auditors.
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A United States appeals court revived an investor lawsuit over the 2023 collapse of Signature Bank, ruling that the FDIC seizure did not strip shareholders of their right to sue. The 3-0 decision by the 2nd U.S. Circuit Court of Appeals in Manhattan reverses a lower court dismissal from March 2025. The ruling restores securities fraud claims led by a Sweden pension fund against former executives and auditors over liquidity risk disclosures.
