SAN FRANCISCO, Aug. 31, 2020 /PRNewswire/ — Hagens Berman urges Credit Acceptance Corp. (NASDAQ: CACC) investors to contact the firm now. The firm is conducting a proprietary investigation into possible securities fraud.
Credit Acceptance Corp. (CACC) Investigation
The investigation centers on whether Credit Acceptance accurately reports its subprime auto loan underwriting, securitization, and debt collection practices.
On Mar. 25, 2020 Citron Research published a scathing report about Credit Acceptance predicting either bankruptcy or 80% downside, noting the future of the company is predicated in part on its ability to securitize future loans and manage the huge wave of defaults on current loans.
Then, on June 26, 2020, the company provided an update on an investigation being conducted by the U.S. Bureau of Consumer Financial Protection (“CFPB”) into Credit Acceptance’s loan originations, credit reporting, and collections practices and announced it received another civil investigative demand on June 1, 2020.
Most recently, on Aug. 28, 2020, the Massachusetts Attorney General sued Credit Acceptance, alleging that since 2013 the company topped off pools of loans that it packaged and securitized with higher-risk loans, despite claiming otherwise in investor disclosures. The complaint also alleges that the company knowingly made high interest rate loans to borrowers who could not repay, in violation of Massachusetts law, and took excessive and illegal measures to collect from defaulted borrowers.
This news sent the price of Credit Acceptance shares crashing lower on Aug. 31, 2020.
“We’re focused on investors’ losses and the extent to which Credit Acceptance and its senior executives may have misrepresented the legality of its lending 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
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP