SAN FRANCISCO, Oct. 06, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges Credit Acceptance Corp. (NASDAQ: CACC) investors to contact the firm now. A securities fraud class action has been filed and certain investors may have valuable claims.
| Class Period: Nov. 1, 2019 – Aug. 28, 2020 | |
| Lead Plaintiff Deadline: Dec. 1, 2020 | |
| Visit: www.hbsslaw.com/investor-fraud/CACC | |
| Contact An Attorney Now: | CACC@hbsslaw.com |
| 844-916-0895 | |
Credit Acceptance Corp. (CACC) Securities Fraud Class Action:
The Complaint alleges that, throughout the Class Period, Defendants misrepresented and concealed that: (1) CACC topped off packaged and securitized pools of loans with higher-risk loans; (2) the company made high-interest subprime auto loans it knew borrowers could not repay; (3) borrowers were subject to hidden finance charges, resulting in loans exceeding the state law mandated usury rate ceiling; (4) the company engaged in illegal debt collection practices; and, (5) that the company was likely to face regulatory scrutiny and possible penalties.
Investors allegedly began to learn the ugly truth on Aug. 28, 2020, when the Massachusetts Attorney General sued Credit Acceptance. The AG alleged that since 2013 the company topped off packaged and securitized loan pools with higher-risk loans despite telling investors otherwise. The AG also alleged Credit Acceptance’s business model is predicated on making loans to borrowers who are unlikely to repay them then engaging in abusive or unlawful debt collection practices to make money.
This news sent the price of Credit Acceptance shares crashing $85.36 lower, or over 18%, during the next two trading days.
“We’re focused on investors’ losses and proving Credit Acceptance concealed its deceptive and illegal lending and collection practices,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Credit Acceptance investor, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Credit Acceptance should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CACC@hbsslaw.com.
About Hagens Berman
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Contact:
Reed Kathrein, 844-916-0895