CREDIT ACCEPTANCE UPDATE


Securities Litigation Partner, James Wilson, encourages investors who suffered losses in excess of $ 100,000 in credit acceptance to contact him directly to discuss their options.

New York, New York – (Newsfile Corp. – October 31, 2020) – If you suffered losses of more than $ 100,000 when investing in stocks or credit acceptance options between November 1, 2019 and August 28, 2020 and would like to discuss your legal rights, click here: www.faruqilaw.com/CACC or call the Faruqi & Faruqi partner James Wilson directly to 877-247-4292 or 212-983-9330 (Ext. 1310).

There is no cost or obligation to you.

Faruqi & Faruqi, LLP, a leading certified national securities law firm owned by minority women, is investigating possible claims against Credit Acceptance Corporation (“Credit Acceptance” or the “Company”) (NASDAQ: CACC) and reminds investors on the December 1, 2020 deadline to pursue the role of lead plaintiff in a federal securities class action lawsuit 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) the Company was outperforming loan pools that packaged and securitized with riskier loans; (2) that Credit Acceptance was providing high-interest, high-risk auto loans to borrowers that the Company knew the borrowers would not be able to repay; (3) that borrowers were subject to hidden finance charges, resulting in loans that exceeded the maximum usury rate limit required by state law; (4) that Credit Acceptance took excessive and illegal measures to collect debt from delinquent borrowers; (5) that, as a result, the Company was likely to face regulatory scrutiny and possible sanctions from various regulators or lawsuits; and (6) that, as a result of the foregoing, the Defendants’ positive statements about the Company’s business, operations, and compliance with appropriate laws and regulations were materially misleading and / or lacking a reasonable basis.

On August 28, 2020, Massachusetts Attorney General Maura Healey filed Mass AG’s shocking lawsuit in Suffolk County Superior Court against the acceptance of credit for allegedly providing unfair and deceptive auto loans to thousands of US consumers. Massachusetts, providing investors with false or misleading information about auto securities they offered and engaging in unfair debt collection practices.

Then, on August 31, 2020, Massachusetts AG published a press release announcing the lawsuit against accepting credit. In the press release, AG Healey stated, “This company made illegal and unaffordable loans to borrowers, causing them to go into debt for thousands of dollars and even lose their vehicles. We are watching this industry closely and will not allow companies to obtain profits by violating our laws and exploiting consumers. ” In addition, the statement notes that this lawsuit is part of AG Healey’s “review of sub-prime auto market securitization practices, an ongoing industry-wide investigation.”

In response to the public disclosure of the Mass AG Complaint, Credit Acceptance’s share price declined precipitously from $ 459.43 at the close of August 28, 2020 to $ 374.07 at the close of trading on September 1, 2020, a $ 85.36 drop which equates to an 18% two-day drop in stock price.

The court-appointed lead plaintiff is the investor with the highest financial interest in the relief requested by the class that is appropriate and typical of the members of the class that conducts and supervises the litigation on behalf of the putative class. Any member of the putative class may petition the Court to act as lead plaintiff through an attorney of their choice, or may choose to do nothing and remain a member of the absent class. Your ability to participate in any recovery is not affected by the decision to act as the primary plaintiff or not.

Faruqi & Faruqi, LLP also encourages anyone with information about the conduct of credit acceptance to contact the company, including whistleblowers, former employees, shareholders, and others.

Advertising of lawyers. The law firm responsible for this announcement is Faruqi & Faruqi, LLP (www.faruqilaw.com). The above results do not guarantee or predict a similar result with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated confidentially.

To view the original version of this press release, visit https://www.newsfilecorp.com/release/67262

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