Irate Investors Seek To Stop Santander Compensation Plan

Feb 4 2009 | 1:48am ET

Investors in Banco Santander’s Bernard Madoff-burned hedge funds are suing to block the Spanish bank’s plan to make them whole.

Investors in Optimal Asset Management’s Strategic U.S. Equity Fund asked a federal judge in Miami to stop Santander’s plan to compensate them until the issue of the bank’s responsibility for the losses has been resolved, Reuters reports. A group of Optimal investors sued Santander last week, alleging it failed to do proper due-diligence on its Madoff investments.

Santander has given its investors until tomorrow to accept its compensation offer, which totals €1.38 billion (US$1.82 billion) in preferential shares with an annual coupon of 2%.

Labaton Sucharow, the U.S. partner of Spanish law firm Cremades & Calvo Sotelo, served the papers in a Florida court on Friday. Cremades’ Jose Luis Gonzalez Montes told Reuters that the court has not responded to the injunction.

“The vast majority of the investors we represent are not very happy with the offer,” he said.

Optimal said last week that it would liquidate seven of its hedge funds.

RELATED STORIES

Santander Offers Madoff Settlement, Shutters Hedge Funds


In Depth

Q&A: Filippo Pignatti Morano On The Ultimate Alternative Investment...Classic Cars

Jan 29 2015 | 12:37pm ET

In 2011, Filippo Pignatti Morano launched a fund to invest in classic cars. FINalternatives...

Lifestyle

Looking For A Hedge Fund Manager? Try Davos

Jan 28 2015 | 8:48am ET

Davos, Switzerland seems to have become the hedge fund capital of the world—at...

Guest Contributor

Five Tips For Successfully Marketing Your Hedge Fund

Jan 30 2015 | 9:14am ET

When it comes to the hedge fund industry, the notion of “build it and it will...

 

Editor's Note