Silvergate Capital Reaches $37.5 Million Shareholder Settlement

The parent company of shuttered Silvergate Bank agreed to settle a shareholder class suit for $37.5 million as part of a larger bankruptcy court deal that resolves fights over how it will allocate director and officer insurance proceeds.

Silvergate Capital Corp. on Tuesday urged the US Bankruptcy Court for the District of Delaware to approve a global settlement that “eliminates complex, expensive and uncertain litigation,” and allows the company to focus on moving forward with a Chapter 11 liquidation plan.

The deal, which was hashed out through months of negotiating, would put to rest securities litigation over alleged compliance failures ...