SILVERGATE SHAREHOLDER ACTION REMINDER: Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Silvergate To Contact Him Directly To Discuss Their Options
Nyenta.com/10226820

Trending...
NEW YORK, Jan. 29, 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.

More on Nyenta.com
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.

More on Nyenta.com
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
Filed Under: Business
Show All News | Report Violation

0 Comments

Latest on Nyenta.com