Credit Acceptance Corporation
Lead Plaintiff Deadline: 12/01/2020
SUMMARY OF CASE:
A securities class action has been filed against Credit Acceptance Corporation (CACC) on behalf of all persons or entities who purchased or otherwise acquired Credit Acceptance common stock between November 1, 2019 through August 28, 2020. This case has been filed in the USDC – E.D.MI.
Credit Acceptance provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. These programs are offered through a nationwide network of automobile dealers who benefit from sales of vehicles to consumers who otherwise could not obtain financing, as 95% of Credit Acceptance’s loans are considered subprime.
The Complaint alleges that on August 28, 2020, the Massachusetts Attorney General (“Mass AG”) filed a lawsuit against Credit Acceptance alleging that the Company has, for years, been making unfair and deceptive automobile loans to thousands of Massachusetts consumers. In addition, the lawsuit specifically alleges that Credit Acceptance provided its investors with false and/or misleading information regarding the asset-backed securitizations they offered to investors, and that the Company engaged in unfair debt collection practices as well. In response to the public disclosure of the Mass AG lawsuit, Credit Acceptance’s stock price fell $85.36 per share, or over 18%, to close at $374.07 per share over two trading days ending on September 1, 2020.