NEW YORK, April 22, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against Santander Consumer USA Holdings Inc. ("Santander" or the "Company") (NYSE: SC) and certain of its officers. The class action, filed in United States District Court, Northern District of Texas, Dallas Division, and docketed under 16-cv-00919, is on behalf of a class consisting of all persons or entities who purchased Santander securities between February 3, 2015 and March 15, 2016 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Santander securities during the Class Period, you have until May 17, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Santander is the holding company for Santander Consumer USA Inc., an Illinois corporation, and subsidiaries, a specialized consumer finance company focused on vehicle finance and unsecured consumer lending products.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company's methodology for estimating credit loss allowance on individually acquired retail installment contracts was improper; (2) that, as a result, the Company's would need to correct its previously issued financial statements; and (3) that, as a result of the foregoing, Defendants' statements about Santander's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On February 29, 2016, after the market closed, the Company filed a NT 10-K with the SEC on Form 12b-25 revealing that Santander was unable to timely file its Annual Report on Form 10-K for the Company's fiscal year ended December 31, 2015 because the Company's financial statements had not yet been completed. According to the Company, it has an open comment letter from the Division of Corporation Finance of the SEC on the Company's Form 10-K for the fiscal year ended December 31, 2014 and Form 10-Q for the quarter ended September 30, 2015 with respect to the Company's credit loss allowance, including the removal of seasonality and the increase in troubled debt restructuring ("TDR") impairment during the quarter ended September 30, 2015 as well as certain TDR disclosures in both periods. According to the Company, it is still discussing these matters with the SEC and its independent accounting firm and will file the Form 10-K as soon as possible.
On March 15, 2016, the Company revealed that the Company was unable to meet the March 15, 2016, extended filing deadline for its 2015 Annual Report because it was still unable to complete its financial statements. According to the Company, it still has an open comment letter from the Division of Corporation Finance of the SEC on the Company's Form 10-K for the fiscal year ended December 31, 2014 and Form 10-Q for the quarter ended September 30, 2015 with respect to estimating the Company's credit loss allowance, including the removal of seasonality and the increase in TDR impairment during the quarter ended September 30, 2015 as well as certain TDR disclosures. According to the Company, as a result of the review, the Company is changing its methodology for estimating credit loss allowance on individually acquired retail installment contracts and will correct prior periods in Item 9B in the Form 10-K. On March 15, 2016, the Company notified the New York Stock Exchange ("NYSE") that it is not in compliance with Rule 8.01E of the NYSE's listed company manual as a result of its failure to file the Form 10-K within the extended time period.
On this news, the Company's shares fell $1.70 per share, or 16%, over two trading sessions to close on March 16, 2016, at $9.00 per share, on high trading volume.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP