Signature Bank Hit With First Investor Suit Over Failure (1)

Signature Bank was hit with its first investor suit since the bank went into receivership Sunday, accused of making misleading statements about its financial health and risks.

Matthew Schaeffer said he bought call options and was “economically damaged” by the bank’s failure, according to a complaint filed in federal court in Brooklyn, New York, on Tuesday.

The suit alleges Chief Executive Officer Joseph DePaolo issued a statement March 9 claiming Signature was a “well-diversified” bank with “in excess of $100 billion in assets,” just days before it was taken over by New York State’s Department of Finance. “Signature bank did ...