NEW YORK, NY / ACCESSWIRE / October 30, 2020 / Cohen Milstein Sellers & Toll PLLC is investigating whether Credit Acceptance Corporation (NASDAQ:CACC) ("Credit Acceptance" or the "Company") and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
A class-action lawsuit was filed in the U.S. District Court for the Eastern District of Michigan by another law firm on behalf of purchasers of Credit Acceptance shares between November 1, 2019 and August 28, 2020, inclusive (the "Class Period"). The deadline for filing lead plaintiff motions with the Court is December 1, 2020.
If you purchased or otherwise acquired Credit Acceptance shares during the Class Period and suffered an economic loss, you may, without any cost or obligation, call Cohen Milstein Attorney Steven J. Toll at (202) 408-4600 or email him at [email protected] to discuss your legal rights and options.
Credit Acceptance provides subprime loans for automobile purchases. Plaintiff alleges defendants made false and misleading statements and/or failed to disclose that: (1) Credit Acceptance was topping off the pools of loans that they packaged and securitized with higher-risk loans; (2) the Company was making high-interest subprime auto loans to borrowers that the Company knew borrowers would be unable to repay; (3) borrowers were subject to hidden finance charges, resulting in loans exceeding the usury rate ceiling mandated by state law; (4) Credit Acceptance took excessive and illegal measures to collect debt from defaulted borrowers; (5) as a result, the Company was likely to face regulatory scrutiny and possible penalties from various regulators or lawsuits; and (6) 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.
The truth emerged on August 28, 2020, when the Massachusetts Attorney General filed a complaint against Credit Acceptance alleging that the Company made unfair and deceptive auto loans to customers and engaged in unfair debt collection practices. Among other things, the complaint also alleged that, since 2013, the Company failed to inform investors that it "topped off the pools of loans it securitized with higher-risk loans, despite claiming otherwise in disclosures" and made high-interest subprime auto loans to borrowers it knew they would be unable to repay.
In response to the news, Credit Acceptance stock fell from $459.54 on August 28, 2020 to $374.07 on September 1, 2020, a decline of more than 18 percent.
Cohen Milstein encourages all investors who purchased or otherwise acquired Credit Acceptance shares or options from November 1, 2019 to August 28, 2020 or former employees with information concerning this matter to contact the firm.
If you wish to serve as lead plaintiff, you must move the Court no later than December 1, 2020 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by whether you decide to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action or you may do nothing and remain an absent class member.
Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York City, Chicago, Philadelphia and Palm Beach Gardens, FL and is active in major litigation pending in federal and state courts throughout the nation.
The firm has been repeatedly appointed by federal courts across the country to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, achieving settlements totaling more than $2.5 billion dollars since 2013 alone. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.
If you have any questions about this notice, the action, or your rights, please contact either of the following:
Steven J. Toll, Esq.
Josh Kluger
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
Fifth Floor
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600
Email: [email protected] or [email protected]
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SOURCE: Cohen Milstein Sellers & Toll PLLC