SAN DIEGO (Legal Newsline) - A company that says it lost nearly $650,000 when the value of Silvergate Capital's stock dropped in November believes it should be the lead plaintiff in securities class action litigation.
Goldberg Flores filed its motion Feb. 6 in San Diego federal court, arguing its $646,535 loss qualifies it as the plaintiff with the largest financial interest. Several cases have been filed over the stock drop, and the firm Lowey Dannenberg says it should be lead counsel after all of them are consolidated.
According to the complaints, 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 longest possible class period - Nov. 1, 2020, through Jan. 5, 2023 - saw Goldberg Flores purchase close to 11,000 shares of Silvergate stock at nearly $800,000.
The motion also asks that Saxena White be appointed liaison counsel.