ACCESSWIRE
02 Feb 2023, 03:43 GMT+10
SAN FRANCISCO, CA / ACCESSWIRE / February 1, 2023 / Hagens Berman urges Silvergate Capital Corporation (NYSE:SI) investors who suffered significant losses to submit your losses now.
Expanded Class Period: Nov. 11, 2020 - Jan. 5, 2023
Lead Plaintiff Deadline: Feb. 6, 2023
Visit: www.hbsslaw.com/investor-fraud/SI
Contact An Attorney Now: [email protected]
844-916-0895
Silvergate Capital Corporation (NYSE:SI) Securities Class Action
The complaint alleges that Defendants made false and misleading statements to investors by repeatedly touting Silvergate's robust compliance framework (including its anti-money laundering and customer identification programs) as a foundation for its growth and by repeatedly assuring investors that it maintained sufficient liquidity to cover inflows and outflows on its platform.
The complaint further alleges that Silvergate's lax compliance practices enabled customers to engage in large scale criminal activities, including an egregious fraud perpetrated by FTX and Alameda Research and massive money laundering operations and, therefore, Silvergate did not comply with all applicable laws. Moreover, Silvergate did not maintain sufficient liquidity to protect against a bank run.
Investors began to learn the truth on Nov. 7, 2022, when Silvergate suddenly and without explanation announced demotion of its Chief Risk Officer. Over the ensuing months, news continued to emerge about Silvergate's exposure to FTX and Alameda and the company's lax compliance. By Dec. 5, 2022, Senator Elizabeth Warren sent a letter to Silvergate CEO (Alan Lane) demanding information about the company's relationship with FTX and Alameda from Silvergate CEO (Alan Lane). According to Senator Warren, 'your bank appears to be at the center of the improper transmission of FTX customer funds.'
Then, on Jan. 5, 2023, Silvergate disclosed that the collapse of FTX led to a run on its subsidiary Silvergate Bank involving massive withdrawals totaling $8.1 billion (or 68% of deposits held as of Sept. 30, 2022) that necessitated the company's sale of illiquid securities for a loss of over $700 million and short term borrowings of $4.3 billion from Federal Home Loan Banks.
These events drove the price of Silvergate shares crashing lower.
'We're focused on investors' losses and proving Defendants lied about the sufficiency of Silvergate's controls to guard against illegal activity and to protect deposits from misappropriation,' said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Silvergate and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Silvergate should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
# # #
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP
Get a daily dose of Raleigh Times news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Raleigh Times.
More InformationFREMONT, California: Elon Musk's brain implant startup Neuralink, valued at some $2 billion during a private fundraising round two years ...
NEW YORK, New York - U.S. stocks moved higher Thursday as investors and traders took a break from their recent ...
LISBON, Portugal: Carsten Spohr, Chief Executive of Lufthansa, has said that as Portugal's government is still debating whether to sell ...
NEW YORK, New York - U.S. stocks were divided on Wednesday, with the technology and industrial sectors parting ways.Tech stocks ...
HOLLYWOOD, California: More than tripling the debut of its 2018 animated original predecessor, Sony Pictures' "Spider-Man: Across the Spider-Verse" opened ...
PARIS, France: European plane manufacturer Airbus is reported to be close to a record agreement to sell 500 narrow-body jets ...
PORTLAND, Oregon: A federal trial has begun in Portland, Oregon examining the constitutionality of a stringent gun control law approved ...
SACRAMENTO, California: Sixteen migrants from Venezuela and Colombia, who had entered the United States through Texas, were transported to California ...
Ozzie Albies hit a three-run homer with two outs in the 10th inning to give the Atlanta Braves a 13-10 ...
Former North Carolina shooting guard D'Marco Dunn announced on social media Thursday that he will transfer to Penn State. Dunn, ...
Harold Ramirez hit a two-run homer to highlight a three-run fourth inning as the host Tampa Bay Rays completed a ...
San Francisco Giants manager Gabe Kapler is living in the moment with his rotation, holding off on naming starters until ...