LOS ANGELES, Sept. 01, 2020 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz continues its investigation of Credit Acceptance Corporation ("Credit Acceptance" or the "Company") (NASDAQ: CACC) on behalf of investors concerning the Company and its officers’ possible violations of federal securities laws.
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On March 25, 2020, Citron Research published a report; (1) highlighting the steep upward trend in subprime auto loan delinquencies, (2) observing "[o]ver the years Credit Acceptance has been taking on riskier and lower return loans and hiding the true volatility of its earnings through aggressive accounting," and (3) questioning the accuracy of the reported book value of the company's loans.
Then, on April 20, 2020, after the market closed, the Company announced it would not timely file its quarterly report for the period ended March 31, 2020.
On this news, the Company’s share price fell $40.71 per share, or over 13%, to close at $254.00 per share on April 21, 2020.
On August 31, 2020, the Attorney General of Massachusetts filed a lawsuit against Credit Acceptance. The Lawsuit alleges that the Company made unfair and deceptive loans to consumers and engaged in unfair debt collection tactics, amongst other charges. According to the AG, the Company has engaged in this behavior since 2013.
On this news, the Company’s share fell more than 15% in intraday trading.
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If you purchased Credit Acceptance securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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Contacts
The Law Offices of Frank R. Cruz, Los Angeles
Frank R. Cruz, 310-914-5007
fcruz@frankcruzlaw.com
www.frankcruzlaw.com