July 10 (Reuters) - A federal judge in California has

dismissed most of First Citizens BancShares' $1

billion lawsuit accusing HSBC ( HSBC ) of poaching more than 40

employees of Silicon Valley Bank after its high-profile

collapse.

U.S. Magistrate Judge Laurel Beeler in San Francisco late

Tuesday said that she lacked the ability to hear some of the

claims by First Citizens, which acquired Silicon Valley Bank

when it failed last year, because they alleged conduct that

occurred outside California.

Beeler also tossed claims against several HSBC ( HSBC ) entities and

former Silicon Valley Bank employees who joined HSBC ( HSBC ), saying

First Citizens had not shown an illegal conspiracy to poach

workers and trade secrets.

"Right now, the allegations against most defendants show

only a failed bank and employees decamping to a better business

opportunity," Beeler wrote.

An HSBC ( HSBC ) spokesperson in a statement said the bank was

pleased with the ruling.

"HSBC ( HSBC ) is strongly committed to the innovation banking space

and to our employees, and will continue to vigorously defend

against the lawsuit brought by First Citizens," the spokesperson

said.

A representative of First Citizens did not immediately

respond to a request for comment.

Beeler is scheduled to hold a conference in August to

discuss the next steps in the case.

The U.S. Federal Deposit Insurance Corporation took over

Silicon Valley Bank in March 2023 after a bank run in which

depositors rushed to pull out their money, causing the largest

bank failure since the 2008 financial crisis.

First Citizens then purchased the failed bank's assets and

deposits, and HSBC ( HSBC ) separately acquired the lender's UK arm.

First Citizens claims in its lawsuit that David Sabow, who

led Silicon Valley Bank's technology and healthcare banking

segment before moving to HSBC ( HSBC ), met with top HSBC ( HSBC ) executives

numerous times and shared plans to poach workers in order to

launch a competing venture capital business.

HSBC ( HSBC ) has denied wrongdoing and said Sabow's efforts to

recruit from Silicon Valley Bank, which had about 8,500

employees when it collapsed, were legitimate and predated First

Citizens' takeover.

Beeler on Tuesday mostly sided with HSBC ( HSBC ), but allowed three

claims against Sabow for alleged trade secrets theft and breach

of contract to move forward. The judge also left the door open

for First Citizens to establish jurisdiction over HSBC's ( HSBC ) UK arm,

where Sabow is employed.