Silicon Valley Bank class action case reaches KPMG settlement, Norway fund says

Norway Fund Secures KPMG Settlement in SVB Class Action After Major Bank Collapse

Norway's Sovereign Wealth Fund Reaches Settlement in SVB Collapse

Background of the Settlement

COPENHAGEN, Nov 6 (Reuters) - Norway's sovereign wealth fund said on Friday that a $224.5 million settlement has been reached with external auditor KPMG LLP in the investor class action over collapsed Silicon Valley Bank (SVB).

Impact of SVB's Collapse

SVB's collapse in March 2023 was the trigger for the worst banking shock since the 2008 global financial crisis, hitting bank stocks globally.

Concerns Raised by the Norwegian Fund

The Norwegian fund later said the case raised significant concerns regarding the integrity of the public markets, the governance of large financial institutions and the interests of the investor community more broadly.

Statement from CEO Nicolai Tangen

"The settlement is an important first step toward recovering investor losses from one of the largest bank failures in US history," CEO Nicolai Tangen of the Norwegian sovereign wealth fund said in a statement.

Ongoing Legal Proceedings

The case continues against other defendants, the fund added.

Norwegian Fund's Investment in SVB

Fund Profile and Global Holdings

The fund, which invests Norway's surplus oil and gas revenue abroad, is the world's biggest single stock market investor, owning some 1.5% of all globally listed shares with stakes in more than 7,000 companies.

Stake in Silicon Valley Bank

It held a 1% stake in SVB at the end of 2022, valued at $137.9 million, according to data on the fund's website.

(Reporting by Stine Jacobsen, editing by Terje Solsvik)