SAN FRANCISCO, April 12, 2016 (GLOBE NEWSWIRE) -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, alerts Santander Consumer USA Holdings Inc. (NYSE:SC) investors of the May 17, 2016 lead plaintiff deadline in the securities class action lawsuit related to the Company’s use of an improper method for estimating credit losses and restatements of its financial statements.
If you suffered significant losses because of your purchases of Santander between February 3, 2015 and March 15, 2016 or have information that will help our investigation contact Hagens Berman Partner Reed Kathrein, who is leading the firm’s investigation by calling 510-725-3000, emailing SC@hbsslaw.com or visiting https://www.hbsslaw.com/cases/SC. The lawsuit was filed in the U.S. District Court for the Northern District of Texas, Dallas Division, and investors have until May 17, 2016 to move the court to participate as a lead plaintiff.
The class action complaint alleges that Defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company used an improper methodology for estimating credit loss allowance on retail installment contracts; (2) the Company would need to restate previously issued financial statements; and, (3) as a result Defendants’ statements about the Company’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis.
After the stock market closed on February 29, 2016, Santander disclosed that (1) it was delaying the filing of its 2015 Form 10-K, and (2) it has an open comment letter from the SEC on the Company’s 2014 Form 10-K and 3Q15 Form 10-Q with respect to its credit loss allowance methodology and disclosures about its troubled debt restructuring impairment.
On March 15, after the stock market closed, Santander filed its Form 8-K stating that it: (1) did not complete its financial statements; (2) was unable to timely file its Form 10-K; (3) violated NYSE Rule 8.01E; and, (4) used an improper methodology for estimating credit loss allowance and would restate prior period financial statements. On this news, the price of Santander stock fell $1.70 per share, or 16%, over two trading sessions to close on March 16, 2016 at $9.00 per share.
On March 31, 2016, Santander announced that after the SEC questioned the Company’s methodology for estimating credit loss allowance it restated its net income (1) for the quarter-ended 12/31/15 to $12 million, or 82% lower than the previously reported $68 million, (2) 5% lower for each of 2014 and 2015, and (3) 2% higher for 2013.
Whistleblowers: Persons with non-public information regarding Santandar Consumer USA Holdings, Inc. should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new SEC whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 510-725-3000 or email SC@hbsslaw.com.
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