Pomerantz Law Firm filed a class action lawsuit against Silvergate Capital

ChainCatcher news, the law firm Pomerantz LLP announced that it has filed a class action lawsuit against cryptocurrency and fintech bank Silvergate Capital Corporation (NYSE: SI) and certain executives.

The lawsuit claims that during the course of the litigation, the defendants made significant false and/or misleading statements and failed to disclose material adverse facts about the company's business, operations, and prospects.

Specifically, the defendants failed to disclose to investors: (1) the company's platform lacked adequate controls and procedures to detect money laundering incidents; (2) Silvergate's customers were involved in money laundering activities exceeding $425 million; (3) for the above reasons, the company was likely to face regulatory scrutiny and potential damages, including penalties and reputational harm; (4) for the above reasons, the defendants' positive statements about the company's business, operations, and prospects were significantly misleading and/or lacked a reasonable basis. (Source link)