Investors File Suit Against Santander Unit, Allege Misleading Statements on Auto Loans

Investors sued a U.S. consumer finance unit of Banco Santander S.A., saying the company misled shareholders about problems in its subprime auto lending business (Steck v. Santander Consumer USA Holdings Inc.complaint filed).

The complaint in the U.S. District Court for the Southern District of New York against Santander Consumer USA Holdings Inc., which followed a Justice Department subpoena against the company earlier in August103 BBR 366, 8/12/14, said a registration statement issued in connection with a January 2014 offering, and other statements, failed to disclose what the suit called improper lending-related practices.

The company also misrepresented ...