NEW YORK, April 5, 2016 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC, notifies investors of class action against Santander Consumer USA Holdings, Inc. ("Santander" or "the Company") (NYSE: SC). The class action has been filed in the United States District Court, Northern District of Texas, Dallas Divison, on behalf of a class consisting of all persons or entities who purchased Santander securities during the period 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").
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 and unfavorable facts about the Santander's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (1) Santander's procedure for assessing credit loss allowance on individually acquired retail installment contracts was incorrect; (2) that, as a result, Santander would need to adjust its previously issued financial statements; and (3) and as a result of the above-mentioned, Defendants' statements about Santander's business, operations, and prospects, were false and misleading and/or lacked a reasonable basis.
On February 29, 2016, post-market, Santander filed its NT 10-K with the SEC on Form 12b-25 informing that the Company was unable to file its Annual Report on Form 10-K on time for the Company's fiscal year ended December 31, 2015, because Santander's financial statements had not yet been completed. Santander announced that it has an open comment letter from the Division of Corporation Finance of The U.S. Securities and Exchange Commission (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. Santander also said it is still discussing these matters with the SEC and its independent accounting firm and will soon file the Form 10-K.
On March 15, 2016, Santander announced that it is once again late in filing its annual report, and will be missing its second deadline. The Company has been recalculating provisions for loan losses in response to regulatory concerns. The SEC has asked for details of previous disclosures about the Santander's credit loss exposure, including damages on troubled debt; as the Company is amending its procedures for estimating bad debt expense. Santander said it 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.
Following this news, Santander shares fell $1.70 per share, or 16%, over two days of heavy trading volume to close on March 16, 2016, at $9.00 per share, on.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint and join the action, visit the firm's website: http://www.bgandg.com/#!sc/ts5gk. To discuss this action, or have any questions, please contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484 or via email email@example.com. Those who inquire by e-mail are encouraged to include their mailing address and telephone number. If you suffered a loss in Santander you have until May 17, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | firstname.lastname@example.org
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