According to a recently filed shareholder complaint, Silvergate Capital Corporation, a digital currency company, and certain of its officers, 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, it is alleged that the Company and its officers 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, positive statements released by the company and its officers about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

If you are a current Silvergate shareholder who has held the stock since at least November 9, 2021, you may be able seek corporate reforms, the return of funds spent defending litigation back to the company, and a court approved incentive award.

If you would like to learn more about this matter at no cost to you, contact us at jgrabar@grabarlaw.com or call 267-507-6085.