SAN DIEGO & DALLAS--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP is investigating whether certain officers and directors of Santander Consumer USA Holdings Inc. (NYSE: SC) breached their fiduciary duties to shareholders. On December 20, 2016, investors filed an amended securities class action complaint against Santander for alleged violations of the Securities Exchange Act of 1934. The complaint alleges that Santander misclassified loans held by the company and applied an incorrect discount rate to the company's troubled debt restructurings, causing it to understate its allowance for credit losses. Because of the company's violations of generally accepted accounting principles, Santander materially overstated its net income, resulting in multiple restatements covering fiscal years 2014 and 2015, and the quarters within those periods. Before the market became aware of these overstatements and while Santander's stock price was artificially inflated, Santander's Chief Executive Officer resigned and cashed out his entire 10% ownership for approximately $928 million. On January 3, 2018, the Honorable Ed Kinkeade of the U.S. District Court for the Northern District of Texas, Dallas Division denied Santander's motion to dismiss.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/santander-consumer-usa-holdings-inc-jan-2018
Santander Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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