A unanimous three-judge panel of the 2nd U.S. Circuit Court of Appeals revived a shareholder lawsuit tied to Signature Bank’s 2023 collapse, ruling that the FDIC did not acquire investors’ personal right to pursue securities fraud claims when it became receiver. The case, led by Swedish pension fund Sjunde AP-Fonden, also known as AP7, accuses seven former Signature executives and directors and former auditor KPMG of concealing liquidity, funding and risk-management weaknesses. Investors say the bank’s shares fell from roughly $70 to $0.09 after its collapse. Signature obtained more than 20% of its deposits from cryptocurrency clients and suffered a deposit outflow exceeding $10 billion in one day after Silicon Valley Bank failed. The New York State Department of Financial Services seized the bank, which regulators closed on March 12, 2023. The appeals court ruled that the Financial Institutions Reform, Recovery, and Enforcement Act’s succession clause did not transfer shareholders’ separate claims to the FDIC and sent the case back to U.S. District Judge Frederic Block, who dismissed it in March 2025. The ruling addressed only whether the lawsuit could proceed; AP7 and the shareholder class now move into discovery and further litigation.