Santander US Escapes Madoff Feeder Fund Class Action

Law360, New York (August 26, 2011, 8:45 PM EDT) -- A New York federal judge on Friday dismissed Banco Santander SA's U.S. arm from a class action implicating it in the Bernard L. Madoff fraud, but reversed an earlier decision by allowing foreign investors to sue the Spanish bank and other subsidiaries.

The proposed class of foreign investors suing Santander allege that the bank led them to buy shares in the Optimal Strategic U.S. Equity fund, a Madoff feeder fund.

Optimal's investment manager — a wholly owned subsidiary of Santander — as well as an employee...
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