April 25, 2025
The parent company of Silvergate Bank has asked a Delaware bankruptcy judge to approve a new deal to settle a securities class action for $37.5 million and resolve a slew of indemnification issues in its Chapter 11, a resolution that the debtor said would save it potentially millions of dollars in legal fees.
In a motion filed Tuesday, Silvergate Capital Corp. urged the court to greenlight a two-pronged global settlement addressing the securities lawsuit and its obligations to indemnify executives and others.
The deal calls for Silvergate to pay $37.5 million to plaintiffs in a class action alleging the collapsed cryptocurrency-focused bank failed to vet its customers, including FTX, and misrepresented its commitment to regulatory compliance before a run on the bank in late 2022. About $27.5 million of the settlement amount would be paid using Silvergate’s remaining directors and officers insurance coverage.
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The securities litigation class is represented by Carol V. Gilden, Steven J. Toll, Jan Messerschmidt, Brendan Schneiderman and Christina Saler of Cohen Milstein Sellers & Toll PLLC, and Jonathan D. Uslaner, Lauren M. Cruz and John Rizio-Hamilton of Bernstein Litowitz Berger & Grossmann LLP.
Read Silvergate Settles Securities Class Action For $37.5M In Ch. 11.