Silvergate Capital $37.5M Securities Class Action Settlement

Consumers who purchased or otherwise acquired publicly traded Silvergate Capital Common Stock between Nov. 7, 2019, and March 21, 2023, or bought Silvergate Capital securities in or traceable to any of the company’s 2021 securities offerings may qualify to claim a portion of a $37.5 million class action settlement.

Silvergate Capital Corp. agreed to pay $37,500,000 to resolve a class action lawsuit alleging it made false and misleading statements regarding Silvergate Bank’s vetting, due diligence and monitoring of customers.

Who is eligible to file a Silvergate claim?

Class members must meet one of the following criteria:

• They purchased or otherwise acquired publicly traded Silvergate Capital common stock (CUSIP: 82837P408; Symbol: SI, later SICP and SICPQ) between Nov. 7, 2019, and March 21, 2023, and suffered damages.
• They purchased Silvergate Capital securities in or traceable to any of Silvergate Capital’s securities offerings in 2021 and suffered damages. The 2021 offerings include:
• Three offerings of Silvergate Capital Common Stock conducted on or about Jan. 22, 2021, from March 9-May 18, 2021, and on or around Dec. 7, 2021.
• An initial public offering of depositary shares representing a 1/40th interest in a share of 5.375% Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A (CUSIP: 82837P507), conducted on or around July 29, 2021.

How much is the securities payout?

The estimated average recovery, before deductions for court-approved fees, expenses and costs, is:

• $0.13 per affected share of Silvergate Capital Common Stock
• $0.22 per affected share of Silvergate Capital Preferred Stock

However, the actual amount each class member receives will depend on several factors, including:

• The number of valid claims submitted
• The amount of court-approved attorneys’ fees and expenses deducted from the fund
• The number and value of shares each claimant purchased, sold and held during the relevant periods

How to claim a stockholder class action rebate

Class members can file a claim online or download, print and complete a PDF claim form and mail it to the settlement administrator. The claim deadline is Oct. 21, 2025.

Settlement administrator's mailing address: Silvergate Securities Litigation c/o JND Legal Administration, P.O. Box 91072, Seattle, WA 98111

Information and documentation required

• Class members must provide the last four digits of Social Security number (for individuals) or taxpayer identification number (for estates, trusts, corporations, etc.).
• Class members must also provide documentation verifying their transactions in Silvergate Capital stock. Acceptable forms of documentation include:
• Copies of broker statements
• Transaction confirmations
• Authorized statements from a broker containing transactional and holding information

Payout options

Payments will be made via paper check to the provided address.

$37.5 million Silvergate settlement fund breakdown

The $37,500,000 settlement fund covers:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $6,375,000
• Attorneys' expenses: Up to $1,400,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Exclusion deadline: Aug.13, 2025
• Final fairness hearing: Sept. 3, 2025
• Claim deadline: Oct. 21, 2025

When is the Silvergate Securities litigation payout date?

Payments to eligible class members will be made after the court grants final approval of the settlement, any appeals are resolved and all claims have been processed.

Why did this class action settlement happen?

The class action lawsuit alleged Silvergate Capital and its related defendants made false and misleading statements about Silvergate Bank’s customer vetting, due diligence and monitoring practices. The plaintiffs claimed these misstatements artificially inflated the price of Silvergate Capital securities. They said that when the truth was revealed, the stock price declined, allegedly causing investor losses.

Silvergate Capital and the other defendants denied any wrongdoing but agreed to settle to avoid the burden and expense of further litigation.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ