Le Lézard
Classified in: Business
Subject: ATY

SILVERGATE INVESTOR ALERT: Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Silvergate To Contact Him Directly To Discuss Their Options

NEW YORK, Feb. 4, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Silvergate Capital Corporation ("Silvergate" or the "Company") (NYSE: SI) and reminds investors of the February 6, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.

If you suffered losses exceeding $100,000 investing in (a) Silvergate Class A Common stock between November  11, 2020  and  January 5, 2023, inclusive (the  "Class  Period"); (b) Silvergate Class A common stock pursuant and/or traceable to the Company's secondary  public offering ("SPO")  conducted  on or  around  January 20,  2021  (the "January  SPO");  and/or  (c)  Silvergate  Class  A  common  stock  pursuant  and/or traceable  to  the  Company's  SPO  conducted  on  or  around  December  6,  2021  (the "December SPO," and together with the January SPO, the "Offerings") and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/SI.

There is no cost or obligation to you.

Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (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.

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."

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 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.

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.

Then, on January 4, 2023, the Company issued a press release announcing that it would release select financial metrics before market open on Thursday, January 5, 2023, and would then host a business update conference call at 8:00 a.m. Eastern Time.

On January 5, 2023, before the domestic stock markets opened, Silvergate issued a press release in which, in pertinent part, it disclosed that total deposits from digital asset customers had declined to $3.8 billion as of December 31, 2022, compared to $11.9 billion as of September 30, 2022, a decline of roughly 68%. In the same release, Silvergate acknowledged that there was a "crisis of confidence" across the cryptocurrency or digital asset ecosystem.

That same day, The Wall Street Journal released an article titled "Silvergate's Deposit Run is Worse Than Great Depression-Era Runs," in which it noted that bank runs from 1930-1933 averaged deposit declines of nearly 38%, and that only a few (9 out of a sample size of 67) had deposit declines exceeding 50%. It further noted that during the 2008 crisis, deposit losses were substantially smaller than the losses faced by Silvergate.

On this news, the Company's Class A common stock fell more than $9 per share, from a closing price of $21.95 on January 4, 2023, to $12.57 on January 5, 2023 on unusually heavy volume, a drop of 42.73%.

The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not. 

Faruqi & Faruqi, LLP also encourages anyone with information regarding Silvergate's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.

Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (www.faruqilaw.com). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.

SOURCE Faruqi & Faruqi, LLP

These press releases may also interest you

at 03:52
Elkem ASA has today published its annual report, including the ESG report, for the financial year ended 31 December 2022. In his letter to shareholders, Elkem's CEO Helge Aasen writes: "Elkem continued to benefit from exceptionally strong markets in...

at 03:28
Aker BP (OSE: AKRBP) has notified the Norwegian Ministry of Petroleum and Energy that the company has acceded to all the Plans for Development and Operation submitted in December 2022, except from one. The Troldhaugen project in the Edvard Grieg...

at 03:15
The Swedish mining group Boliden is becoming one of the first in the world to start using battery-electric trucks for heavy underground transport starting 2023. In mining environments, the electric trucks can deliver several big advantages ?...

at 03:10
Vitestro, developer of an autonomous blood drawing device, announces the completion of a EUR 12 million Series A financing round. California-based Sonder Capital led the funding round alongside existing investors and new private investors with...

at 03:00
The Los Angeles employment law attorneys, at Blumenthal Nordrehaug Bhowmik De Blouw LLP, filed a class action lawsuit against Caliber Holdings L.L.C., alleging the company violated the California Labor Code. The lawsuit against Caliber Holdings...

at 03:00
The Law Office of Mary Ann Tardiff recently announced new fixed fees for estate plans. The Atascadero-based attorney provides estate planning, wills, and trusts to Paso Robles, Atascadero and the California Central...

News published on 4 february 2023 at 11:00 and distributed by: