Santander Beats Customer Bid to Revive Puerto Rico Bond Dispute

Banco Santander SA fought off brokerage customers’ attempt to revive a securities suit over Puerto Rican municipal bonds after the First Circuit said the complaint fell short of alleging any material omissions.

Customers alleged the bank, Santander Securities LLC, and related entities misled them about the risk of the Puerto Rican securities. The would-be class complaint didn’t show that the defendants left out information in a way that made their other statements misleading, the Boston-based US Court of Appeals for the First Circuit said.

The customers allege Santander should have disclosed “information regarding the deteriorating market conditions for Puerto ...