Inversiones Mar Octava v. Banco Santander

Complaint in Inversiones Mar Octava v. Banco Santander


This class action complaint was filed by a Chilean company and an Argentinean individual, claiming they lost money through their investment in the Optimal Strategies U.S. Equity Fund, a subfund managed by Optimal Investment Services and marketed by Banco Santander S.A. in the United States. The complaint alleges that substantially all of the Optimal SUS fund was invested with Madoff’s firm.

The complaint is filed on behalf of persons who owned Optimal SUS shares on December 10, 2008 or who purchased shares of Optimal SUS between January 23, 2004 and December 10, 2008.

The complaint names as defendants Banco Santander S.A., Banco Santander International, Optimal Investment Services S.A. (Santander’s Geneva-based hedge fund unit) and individuals related to Optimal.

In addition, the complaint also names as defendants PricewaterhouseCoopers, which acted as auditor, and two related HSBC entities which acted as administrator, registrar, transfer agent and custodian for the Optimal Funds.

The complaint alleges that the defendants violated the U.S. securities laws by issuing materially false and misleading statements about their due diligence and oversight of Madoff and BMIS. Among the allegedly false statements made in the Explanatory Memorandum dated January 7, 2008, that was distributed to investors, was the assurance that Optimal "bases its investment decisions on a careful analysis of many investment managers." The complaint further asserts that had the Defendants conducted a reasonably "careful analysis" of Madoff and BMIS, Defendants would not have lost billions of dollars belonging to the investors.

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Reference Info:Pleadings | State, 11th Circuit, Florida | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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