Santander Consumer Holdings receives securities class action lawsuit

A law office recently noted it had filed a securities class action lawsuit against a consumer finance company following its failure to disclose alleged inappropriate subprime auto lending practices.

Kirby McInerney, LLP, announced last week that the litigation was filed in the U.S. District Court for the Southern District of New York against Santander Consumer Holdings. The lawsuit was filed on behalf of investors who acquired a share of Santander following its initial public offering on Jan. 23. 

The lawsuit states that the company, as well as IPO underwriters, allegedly violated Sections 11 and 15 of the Securities Act of 1933. It explains that the financial institution, along with certain officers and directors, failed to disclose in its Registration Statement filed with the SEC that it may have engaged in improper subprime auto lending practices before its IPO. In addition, Santander has potentially misrepresented both the quality of loans it had underwritten and its underwriting standards.

Santander received a subpoena from the U.S. Department of Justice on Aug. 7, 2014, in search of documents related to the company's underwriting and securitization of nonprime auto loans for the last seven years. Following the company's announcement in regard to the DOJ's actions, Santander's stock prices fell from $18.23 to $17.95, a loss of $0.28 per share. 

The law firm noted that if you purchased securities in Santander following its IPO earlier this year, and would like to learn more about the litigation filed against the company, the best person to contact is Meghan Summers. Some rights you may have related to the litigation are potentially time sensitive. 

Series of lawsuits filed against Santander
Glancy Binkow & Goldberg, LLP, also announced a lawsuit against the finance company, whose primary business includes vehicle finance and unsecured consumer lending products. The litigation is also in relation to the company's failure to acknowledge its alleged improper lending practices that ultimately led to a subpoena under the Financial Institutions Reform, Recovery and Enforcement Act. Following Santander's announcement in relation to the subpoena shares fell 1 percent on August 8, marking a 25 percent drop in stock price since the company's January IPO. 

Shareholders in search of more information about Glancy Binkow & Goldberg's class action lawsuit against Santander should contact Casey Sadler or Lesley Portnoy.