LOS ANGELES – (BUSINESS WIRE) – The law firms of Frank R. . Cruz reminds investors of the upcoming 1. December 2020 to file lead plaintiff motion in class action filed on behalf of investors who have purchased or otherwise acquired Credit Acceptance Corporation (« Credit Acceptance » or the « Company ») (NASDAQ: CACC). Ordinary shares between 1. November 2019 and 28. August 2020 (including the « class period »).
On Friday the 28th. August 2020, the Massachusetts Attorney General (« AG ») filed a loan acceptance complaint alleging the company provided unfair and misleading auto loans to consumers and engaged in unfair debt collection practices. The complaint alleged, among other things, that since 2013, loan acceptance has been replenishing the loan pools that it has packaged and securitized with higher-risk loans. It was also alleged that the loan acceptance provided high-yield subprime auto loans that the company knew could not be paid by borrowers, thereby ignoring the likelihood that borrowers would default on their loans.
On Monday the 31st. August 2020, Massachusetts AG issued a press release announcing the lawsuit, stating that the company’s « prohibitive and illegal loans » resulted in borrowers « falling into thousands of dollars in debt and even losing their vehicles. ”
On the news, Credit Acceptance’s share price fell $ 85. 36 or 18% to close at $ 374. 07 per share on 1. September 2020, hurting investors.
The complaint filed alleges that throughout the class period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the company’s business, operations and prospects. Specifically, Defendants have failed to advise investors: (1) that loan acceptance replenished the pools of loans that they had packaged and securitized with higher risk loans; (2) that loan acceptance granted high-yield, subprime auto loans to borrowers that the company knew could not be repaid by borrowers; (3) that borrowers were subject to hidden financing costs, which resulted in loans exceeding the usury ceiling prescribed by state law; (4) that credit acceptance has taken excessive and illegal measures to collect debts from defaulted borrowers; (5) As a result, credit acceptance has likely been subject to government scrutiny and possible penalties from various regulators or litigation. and (6) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, business and prospects were materially misleading and / or were unfounded.
If you have purchased or otherwise acquired securities for credit acceptance during the class period, you can notify the court no later than 1. Requesting appointment as lead plaintiff in this alleged class action lawsuit on December 31, 2020. To be a member of the class action you do not need to take any action at this point. You can keep an attorney of your choice or you can take no action and remain an absent member of the class action. If you would like to learn more about this class action or have any questions about this announcement or your rights or interests in relation to the pending class action, please contact Frank R.. . Cruz of Frank R. . Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, 310-914-5007, via email to info @ frankcruzlaw. com or visit our website at www. frankcruzlaw. com. When inquiring by email, please include your postal address, telephone number and number of shares purchased.
This press release may be viewed as a solicitor advertisement in some jurisdictions under applicable law and ethical rules.
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