Investors settle with KPMG over Silicon Valley Bank collapse

COPENHAGEN, Nov 6 (Reuters) - Investors involved in a class action lawsuit over the 2023 collapse of Silicon Valley Bank (SVB) have reached a $224.5 million settlement with external auditor KPMG LLP, Norway's sovereign wealth fund said on Friday.

KPMG said the settlement was not an admission of wrongdoing and that it stood by its work.

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

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.

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

"We continue to stand by our audits of Silicon Valley Bank, and we are proud of our audit quality track record. This settlement is a strategic decision to move forward as a business. It is not an admission of any wrongdoing," a KPMG US spokesperson said in a written statement.

The class action case continues against other defendants, the Norwegian fund said.

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.

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.