Silvergate Capital Lawsuit SI | Deadline February 6, 2023

Silvergate Capital Class Action Lawsuit (SI Lawsuit)

A lawsuit has been filed in the Southern District of California against Silvergate Capital Inc., (SI: NYSE) as a result of  the company’s platform lacking sufficient controls and procedures to detect instances of money laundering. The stock fell 28.02%.

What is The Silvergate Capital Lawsuit About?

The Silvergate Capital Corporation Class Action Lawsuit (NYSE:SI) (Silvergate Capital Class Action Lawsuit) was filed after the market closed on November 17, 2022, The Bear Cave newsletter released an article about several companies with potential exposure to recently collapsed cryptocurrency exchange FTX, including Silvergate.

The article highlighted the connection linking Silvergate to a money laundering operation that transferred $425 million off cryptocurrency trading platforms.

Is There A Silvergate Capital Class Action Lawsuit?

SI:NYSE Class Action Lawsuit (Silvergate Capital)  was filed on December 7, 2022 on behalf of the shareholders. On November 15, 2022, Marcus Aurelius Research tweeted that “Recently subpoenaed Silvergate bank records reveal $425 million in transfers from $SI crypto bank accounts to South American money launderers.

Affadavit from investigation into crypto crime ring linked to smugglers/drug traffickers.” The tweet contained a link to an August 2022 forfeiture application for probable cause filed in Broward County, Florida.

The forfeiture application connected Silvergate to a money laundering operation.

On this news, the Company’s Class A common stock price fell $6.13, or 17%, to close at $29.36 per share on November 15, 2022, on unusually heavy trading volume.

On November 17, 2022, The Bear Cave newsletter released an article about several companies with potential exposures to recently collapsed cryptocurrency exchange FTX, including Silvergate.

In addition to the money laundering operation linked to Silvergate that transferred $425 million off cryptocurrency trading platforms, it drew attention to potential violations of Silvergate’s anti-nepotism policy.

On this news, the Company’s Class A common stock price fell $3.00, or 10.7%, to close at $24.90 per share on November 18, 2022, on unusually heavy trading volume.

Is There A Deadline For The SI Lawsuit?

The deadline for Silvergate Capital Class Action Lawsuit (NYSE:SI) (Silvergate Capital) is February 6, 2023 for a Lead Plaintiff.

How Much Did Shareholders Lose In SI Stock?

Shareholders who held Silvergate Capital securities saw stock price fell $6.13, or 17%, to close at $29.36 per share on November 15, 2022, on unusually heavy trading volume.

The Company’s Class A common stock price fell $3.00, or 10.7%, to close at $24.90 per share on November 18, 2022, on unusually heavy trading volume.

What Is The Silvergate Capital Lawsuit Complaint?

An SI class action lawsuit (Silvergate Capital Class Action Lawsuit) has been filed on behalf of investors who purchased Silvergate Capital Class Action Lawsuit (SI) securities between November 9, 2021 – November 17, 2022, inclusive. For more on the SI Lawsuit please contact us today.

According to the Silvergate Capital Corporation lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:

(1) that the Company’s platform lacked sufficient controls and procedures to detect instances of money laundering;

(2) that Silvergate’s customers had engaged in money laundering in amounts exceeding $425 million;

(3) that, as a result of the foregoing, the Company was reasonably likely to receive regulatory scrutiny and face damages, including penalties and reputational harm; and

(4) that, as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you suffered a loss in SI, you have until February 6, 2023 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.

Why Levi & Korsinsky, LLP?

Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.

 

What Is The Lead Plaintiff Process?

THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired SI securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The SI class-action lawsuit is directed by the lead plaintiff. To litigate the Silvergate Capital Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the Silvergate Capital.

What Does SI Do?

Silvergate Capital Corporation operates as a bank holding company for Silvergate Bank that provides banking products and services to business and individual clients in the United States.

The company accepts deposit products, including interest and noninterest bearing demand accounts, money market and savings accounts, and certificates of deposit accounts.

Its loan products comprise one-to-four family real estate loans, multi-family real estate loans, commercial real estate loans, construction loans, commercial and industrial loans, mortgage warehouse loans, and reverse mortgage loans, as well as consumer loans and other loans secured by personal property.

The company also provides cash management services for digital currency-related businesses. Silvergate Capital Corporation was founded in 1988 and is headquartered in La Jolla, California.

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