According to the law firm press release, Santander is a specialized consumer finance company focused on vehicle finance and unsecured consumer lending products. The Company’s primary business is the indirect origination of retail installment contracts principally through manufacturer-franchised dealers in connection with their sale of new and used vehicles to retail consumers. In connection with the Company’s IPO, Santander’s selling stockholders sold approximately 85 million shares of Class A common stock to the public at a price of $24.00 per share.
On August 7, 2014, after the close of trading, Santander revealed in a quarterly filing that the Company had received a civil subpoena from the United States Department of Justice under the Financial Institutions Reform, Recovery and Enforcement Act (“FIRREA”) requesting the production of documents and communications related to the Company’s underwriting and securitization of nonprime auto loans since 2007. Following this news, shares of Santander declined over 1% to close on August 8, 2014, at $17.95 per share, representing a 25% decline in Santander’s stock price from the IPO price of $24.00.
On June 17, 2015, the Court issued an Order transferring this case to the Northern District of Texas.
An amended complaint was filed on October 30, 2015. On July 11, 2017, the Court issued an Order staying the case until the appeal of Judge Atlas class certification opinion is resolved by the U.S. Court of Appeals for the Fifth Circuit. On October 1, 2018, the Court issued an Order lifting the stay.
The parties entered into a Stipulation of Settlement on July 28, 2020. On August 13, the Court issued an Order preliminarily approving the Settlement.