Silvergate Capital hit with class action lawsuit for Securities Law violations Silvergate Capital hit with class action lawsuit for Securities Law violations
Pomerantz LLP has filed a class action lawsuit against Silvergate Capital Corporation for alleged securities law violations.
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Updated: Jan. 2, 2023 at 11:43 am UTC
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Pomerantz LLP — a firm dedicated to representing the rights of defrauded investors — filed a class action lawsuit against Silvergate Capital over alleged violations of the Securities Exchange Act.
The lawsuit was filed in the US District Court for the Southern District of California on behalf of all individuals and entities who purchased or acquired Silvergate securities between Nov. 9, 2021, and Nov. 17, 2022 (the “Class Period).
The class action complaint alleges Silvergate Capital violated the Securities Exchange Act of 1934 by making:
“False and/or misleading statements, as well as {failing} to disclose material adverse facts about the Company’s business, operations, and prospects.”
Furthermore, the class action accused Silvergate of failing to disclose that:
- “The company’s platform lacked sufficient controls and procedures to detect instances of money laundering.”
- “That Silvergate’s customers had engaged in money laundering in amounts exceeding $425 million.”
- “{That} the company was reasonably likely to receive regulatory scrutiny and face damages, including penalties and reputational harm.”
As a result of the alleged actions, Silvergate’s Class A common stock price fell significantly on two separate occasions during the Class period.
Shareholders who purchased Silvergate securities during the Class period have until Feb. 6 to ask the Court to appoint them as a Lead Plaintiff for the class.
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Josh O'Sullivan
Josh has been writing for a decade and is passionate about mainstream crypto adoption, bringing positive financial change to the masses through crypto and decentralized finance as a whole.
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Silvergate
Silvergate is a Federal Reserve member bank and the leading provider of innovative financial infrastructure solutions and services for the growing digital currency industry, based in La Jolla, California.