SAN DIEGO (Legal Newsline) — A local union pension fund is claiming securities fraud against Silvergate Bank.
International Union of Operating Engineers Local No. 793 and Members Pension Benefit Trust of Ontario on behalf of itself and all others similarly situated filed a complaint Jan. 19 in the U.S. District Court for the Southern District of California against Silvergate Capital Corporation and others alleging violations of federal securities laws and other claims.
According to the plaintiffs' complaint, Silvergate, a federally regulated banking institution, allows customers to send U.S. dollars and euros with its Silvergate Exchange Network. The plaintiffs claim that throughout the class period, Silvergate touted its regulatory compliance program including anti-money laundering polices.
They further claim that beginning in November of 2022, Silvergate made several announcements and disclosures including the company's lack of compliance practices, the demotion of its chief risk officer and the run on Silvergate Bank which led to an $8.1 billion deposit decline and the need to borrow $4.3 billion from Federal Home Loan Banks. The plaintiffs allege Silvergate's misrepresentations caused a nearly $10 per share stock price decline.
The plaintiffs seek monetary relief, interest, trial by jury and all other just relief. They are represented by Jonathan Uslander of Berstein Litowitz Berger & Grossman LLP in Los Angeles and Hannah Ross, John Rizio-Hamilton, Avi Josefson and Scott Goflietta of Berstein Litowitz Berger & Grossman LLP in New York..
U.S. District Court for the Southern District of California case number 3:23-CV-00099-RSH-DEB