NEW YORK, Dec. 21, 2022 (GLOBE NEWSWIRE) -- Lowey Dannenberg P.C. announces that a class action lawsuit has been filed on behalf of investors who purchased Silvergate Capital Corporation (“Silvergate” or the “Company”) (NYSE: SI) securities between November 9, 2021 and November 17, 2022, inclusive (the “Class Period”). The class action alleges violations of the federal securities laws. Silvergate investors have until February 6, 2023 to file a lead plaintiff motion.

Investors suffering losses on their Silvergate investments are encouraged to contact Lowey Dannenberg to discuss their legal rights in this class action at (914) 733- 7256 or via email at afarah@lowey.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.

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.

If you have suffered a net loss from investment in Silvergate securities between November 9, 2021 and November 17, 2022, you may obtain additional information about this lawsuit and your ability to become a Lead Plaintiff, by contacting Andrea Farah at afarah@lowey.com or by calling 914-733-7256, or Yuanchen Lu at ylu@lowey.com or by calling 914-733-7263. The class action is titled Rosa v. Silvergate Capital Corp., 3:22-CV-01936 (S.D. Cal.).

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

About Lowey Dannenberg

Lowey Dannenberg is a national firm representing institutional and individual investors, public funds, organizations, and other entities, who suffered financial losses resulting from corporate fraud and malfeasance in violation of federal securities and antitrust laws, and consumer protection laws. The firm has significant experience in prosecuting multi-million-dollar lawsuits and has previously recovered billions of dollars on behalf of its clients.

Contact

Lowey Dannenberg P.C.
44 South Broadway, Suite 1100
White Plains, NY 10601
Tel: (914) 733- 7256
Email: afarah@lowey.com

SOURCE: Lowey Dannenberg