Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, is investigating certain directors and officers of Silvergate Capital Corporation (“Silvergate”) (NYSE: SI) for breaching their fiduciary duties to Silvergate and its shareholders. If you are a Silvergate shareholder, you may contact attorney Joe Pettigrew for additional information toll-free at 844-818-6982, or jpettigrew@scott-scott.com.
Scott+Scott is investigating whether members of Silvergate’s board of directors made, or caused Silvergate to make, false and/or misleading statements, as well as failed to disclose material adverse facts about Silvergate’s business, operations, prospects, and financial health. Specifically, Scott+Scott is investigating whether the board failed to disclose material information, including whether Silvergate misled investors by failing to disclose that: (i) Silvergate’s platform lacked sufficient controls and procedures to detect instances of money laundering; (2) Silvergate’s customers had engaged in money laundering in amounts exceeding $425 million; (3) that, as a result of the foregoing, Silvergate was reasonably likely to receive regulatory scrutiny and face damages, including penalties and reputational harm; and whether, as a result, statements about Silvergate’s business, operations, and prospects lacked a reasonable basis.
On November 15, 2022, Marcus Aurelius Research stated that recently revealed Silvergate bank records showed $425 million in transfers to South American money launderers. On November 17, 2022, The Bear Cave reported on several companies with potential exposure to the recently collapsed cryptocurrency exchange FTX, including Silvergate. On January 5, 2023, multiple media reports indicated that Silvergate customers withdrew around $8.1 billion in digital-asset deposits in the fourth quarter of 2022, causing Silvergate to sell assets at a steep loss and fire 40 percent of its staff.
What You Can Do
If you are a Silvergate shareholder, you may have legal claims against Silvergate’s directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at 844-818-6982, or jpettigrew@scott-scott.com.
About Scott+Scott
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.
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