SAN FRANCISCO, May 29, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Credit Acceptance Corporation (NASDAQ: CACC) to submit their losses now.
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, the company announced it would not timely file its quarterly report for the period ended Mar. 31, 2020.
On May 27, 2020, the company filed its belated quarterly report disclosing, among other things, an allowance for credit losses of approximately $3.24 billion, or a whopping 33% of its approximately $9.86 billion loans receivable.
These matters have driven the price of Credit Acceptance shares sharply lower.
“We’re focused on whether Credit Acceptance may have misled investors about the credit quality of its loan portfolio,” 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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Reed Kathrein, 844-916-0895