Haeggquist & Eck, LLP, a shareholder, and consumer rights litigation firm has commenced an investigation into Santander Consumer USA Holdings Inc. (NYSE: SC) (“Santander Consumer” or the “Company”) for securities law violations in connection with the Company’s January 23, 2014, Initial Public Offering (“IPO”).
Santander Consumer is the U.S. auto-lending unit of the Spanish bank, Banco Santander SA (NYSE: SAN). Founded in 1995, Santander Consumer has serviced a finance portfolio of more than $35 billion, has more than two million customers and is headquartered in Dallas, Texas. Santander Consumer originates car loans through car dealerships, manufacturers, banks, and its direct-to-consumer website. More than 80% of its loans are subprime loans, which have both higher yields and increased default rates.
Zeldes Haeggquist & Eck, LLP is investigating whether Santander Consumer failed to disclose material information to investors in connection with its January 23, 2014, IPO.
On August 7, 2014, Santander Consumer said in a quarterly filing with the U.S. Securities and Exchange Commission that it received a subpoena from the U.S. Department of Justice under the Financial Institutions Reform, Recovery, and Enforcement Act requesting the production of “documents and communications that, among other things, relate to the underwriting and securitization of nonprime auto loans since 2007.” Upon these revelations, the price of Santander Consumer shares dropped significantly.