Deka Investment GmbH v. Santander Consumer USA Holdings Inc.
Robbins Geller Secures $47 Million Settlement for Investors
On January 12, 2021, Robbins Geller and co-counsel secured a $47 million settlement in Deka Investment GmbH v. Santander Consumer USA Holdings Inc. Lead plaintiffs Deka Investment GmbH and City of Dearborn Heights Act 345 Police & Fire Retirement System alleged that Santander Consumer USA Holdings Inc. (“SCUSA”) conducted an initial public offering (“IPO”) of its common stock on January 23, 2014, and that, both prior to the IPO and during the class period, SCUSA told investors that they could expect to receive dividend payments, but failed to disclose that there were restrictions in its ability to pay those dividends, due to regulations on bank holding companies imposed by the Federal Reserve. The complaint further alleged that defendants misled investors about the sufficiency of their compliance controls and risk management capabilities. The complaint alleged that SCUSA, 2 of its officers, 10 of its directors, as well as 17 underwriters of its January 23, 2014 multi-billion dollar IPO violated §§11, 12(a)(2), and 15 of the Securities Act of 1933 as a result of their negligence in connection with misrepresentations in the prospectus and registration statement for the IPO (“Offering Documents”). The complaint also alleged that SCUSA and two of its officers violated §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 as a result of their fraud in issuing misleading statements in the IPO Offering Documents as well as in subsequent statements to investors.
Deka Investment GmbH v. Santander Consumer USA Holdings Inc., No. 3:15-cv-02129-K (N.D. Tex.).