CREDIT ACCEPTANCE DEADLINE ALERT
Securities Litigation Partner James Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In Credit Acceptance To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $100,000 investing in Credit Acceptance stock or options between November 1, 2019 and August 28, 2020 and would like to discuss your legal rights, please fill out the form below. You can also call Faruqi & Faruqi partner James Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
There is no cost or obligation to you.
Faruqi & Faruqi, LLP, a leading minority and certified woman-owned national securities law firm, is investigating potential claims against Credit Acceptance Corporation (“Credit Acceptance” or the “Company”) (NASDAQ:CACC) and reminds investors of the December 1, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
As detailed below, the lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) that the Company was topping off the pools of loans that they packaged and securitized with higher-risk loans; (2) that Credit Acceptance was making high interest subprime auto loans to borrowers that the Company knew borrowers would be unable to repay; (3) that the borrowers were subject to hidden finance charges, resulting in loans exceeding the usury rate ceiling mandated by state law; (4) that Credit Acceptance took excessive and illegal measures to collect debt from defaulted borrowers; (5) that, as a result, the Company was likely to face regulatory scrutiny and possible penalties from various regulators or lawsuits; and (6) that, as a result of the foregoing, Defendants positive statements about the Company’s business, operations, and adherence to appropriate laws and regulations were materially misleading and/or lacked a reasonable basis
On August 28, 2020, the Massachusetts Attorney General, Maura Healey, filed the stunning Mass AG Complaint in Suffolk County Superior Court against Credit Acceptance for allegedly making unfair and deceptive auto loans to thousands of Massachusetts consumers, providing investors with false or misleading information regarding auto securities they offered, and engaging in unfair debt collection practices.
Then, on August 31, 2020, the Massachusetts AG published a press release announcing the lawsuit against Credit Acceptance. In the press release, AG Healey stated, “This company made unaffordable and illegal loans to borrowers, causing them to fall into thousands of dollars of debt and even lose their vehicles. We are taking a close look at this industry and we will not allow companies to profit by violating our laws and exploiting consumers.” Additionally, the release points out that this lawsuit is part of AG Healey’s “review of securitization practices in the subprime auto market—an industry-wide investigation that remains ongoing.”
In response to the public disclosure of the Mass AG Complaint, Credit Acceptance’s stock price declined precipitously from $459.43 at close on August 28, 2020 down to $374.07 at the close of trading on September 1, 2020—an $85.36 drop equating to an 18% two-day decline in share price.
Credit Acceptance Corporation
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Filed on 09/01/2020
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Phone (212) 983-9330
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Robert W. Killorin firstname.lastname@example.org Phone (404) 847-0617 Fax (404) 506-9534
James M. Wilson, Jr. email@example.com Phone (212) 983-9330 Fax (212) 983-9331