SAN FRANCISCO, May 11, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges persons and investors in Credit Acceptance Corporation (CACC) who have suffered significant losses to submit their losses now. The firm is continuing to investigate possible securities law violations and welcomes contact by persons and investors who may have information relating to investor claims.
Credit Acceptance Corporation (CACC) Investigation:
The investigation concerns Credit Acceptance’s repeated assurances, as recently as Feb. 11, 2020, that the company maintained in all material respects effective internal controls over financial reporting.
On Mar. 25, 2020, Citron Research published a report (1) highlighting the steep upward trend in subprime auto loan delinquencies, (2) observing “[o]ver the years CACC 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 Apr. 20, 2020, after the market closed, the company announced it would not timely file its quarterly report for the period ended Mar. 31, 2020.
These matters have driven the price of Credit Acceptance shares sharply lower.
“We’re focused on, among other things, whether Credit Acceptance may have misled investors about the value of its loans receivable and allowance for credit losses,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Credit Acceptance and suffered significant losses, 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.
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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