Credit Acceptance Corporation - Securities Class Action

Company and Case Information

IMPORTANT INFORMATION | INDEX OF FILINGS | SEARCH

Home

Index of Filings

News and Press Releases

Filings

Decisions

Settlements

Litigation Activity Indices

Top Ten List

Annual/Quarterly Updates

Clearinghouse Research

Articles & Papers

Search

Related Sites

About Us

Local Rules

Sponsors

Register

_______________
Copyright (c) 2001
Stanford Law School

Credit Acceptance Corporation Conclusion: As reported by the Company’s FORM 10-Q for the quarterly period ended September 30, 2001, on May 15, 2001, following presentation of a formal Stipulation of Settlement to the District Court, the District Court entered an order granting preliminary approval of the proposed settlement, directing that notice thereof be mailed to members of the Class, and setting a hearing on final approval of the proposed settlement for August 14, 2001. The District Court subsequently adjourned the hearing on final approval to September 24, 2001. At the September 24, 2001 hearing, the District Court entered an Order and Final Judgment finally approving the proposed settlement and dismissing the action with prejudice. The settlement will not have a material impact on the Company's financial position, liquidity and results of operations.

Earlier, according to the same SEC filing, several putative class action complaints were filed by shareholders against the Company and certain officers of the Company in the United States District Court for the Eastern District of Michigan seeking money damages for alleged violations of the federal securities laws. On August 14, 1998, a Consolidated Class Action Complaint, consolidating the claims asserted in those cases, was filed. On April 23, 1999, the Court granted the Company's and the defendant officers' motion to dismiss the Complaint and entered a final judgment dismissing the action with prejudice. On May 6, 1999, plaintiffs filed a motion for reconsideration of the order dismissing the Complaint or, in the alternative, for leave to file an amended complaint. On July 13, 1999, the Court granted the plaintiffs' motion for reconsideration and granted the plaintiffs leave to file an amended complaint. Plaintiffs filed their First Amended Consolidated Class Action Complaint on August 2, 1999. On September 30, 1999, the Company and the defendant officers filed a motion to dismiss that complaint. On or about November 10, 1999, plaintiffs sought and were granted leave to file a Second Amended Consolidated Class Action Complaint. On March 24, 2000, the Court granted the Company's and the defendant officers' and directors' motion to dismiss the Second Amended Consolidated Class Action Complaint and entered a final judgment dismissing the action with prejudice. On April 7, 2000, plaintiffs filed a notice of appeal. On October 26, 2000, the parties reached an agreement in principle to settle the action. On November 13, 2000, the Court of Appeals remanded the case to the District Court for purposes of the District Court's consideration of the proposed settlement.

The original Complaint charges Credit Acceptance and certain of its officers and directors with violations of federal securities laws. Throughout the Class Period, Credit Acceptance's results, as reported by defendants, did not accurately reflect Credit Acceptance's true financial position and results of operations. The financial results which defendants issued failed to be reported in accordance with generally accepted accounting principles. Such results contained material accounting irregularities in that they failed to reflect adequate reserves for credit losses. Moreover, defendants issued public statements during the Class Period which fraudulently created the false impression that Credit Acceptance's accounting practices were proper. The complaint further alleges that the price of Credit Acceptance's common stock fell from a high range of $27-$26 at which it sold during late July through late November 1996, to a $3.00 close on October 28, 1997. On October 22, 1997, the last day of the Class Period, the company reported a net loss for the quarter ended September 30, 1997 of $(27,708,000) or $(.59) per share and that credit losses in the amount of $60 million were recorded. Credit Acceptance stock plunged upon the disclosure of the true nature of the company's financial position and results of operations, and the Class has been damaged thereby.

INDUSTRY CLASSIFICATION:
SIC Code: 6141
Sector: Financial
Industry: Consumer Financial Services

COMPANY/ISSUER NAME:	Credit Acceptance Corporation
COMPANY/ISSUER TICKER:	CACC
COMPANY WEBSITE:	http://www.credaccept.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Edwin Miller, et al. v. Credit Acceptance Corporation, et al.

COURT: E.D. Michigan	DOCKET NUMBER: 98-CV-70417
JUDGE NAME: Hon. Nancy G. Edmunds
DATE FILED: 01/29/1998	SOURCE: Internet
CLASS PERIOD START: 09/29/1995	CLASS PERIOD END: 10/22/1997
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Lionel Z. Glancy 1801 Avenue of the Stars Suite 308, Los Angeles, CA, 90067 (voice) 310.201.9150, (fax) , _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint
Type: Complaint		Date on the document: 01/29/1998
CIVIL DOCKET FOR CASE #: 98-CV-70417
Type: Docket		Date on the document: 03/31/1998

REFERENCE COMPLAINT

Edwin Miller, et al. v. Credit Acceptance Corporation, et al.

COURT: E.D. Michigan	DOCKET NUMBER: 98-CV-70417
JUDGE NAME: Hon. Nancy G. Edmunds
DATE FILED: 11/10/1999	SOURCE: Business Wires
CLASS PERIOD START: 09/29/1995	CLASS PERIOD END: 10/22/1997
TYPE OF COMPLAINT: Second Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bernstein Liebhard & Lifshitz LLP (New York, NY) 10 E. 40th Street, 22nd Floor, New York, NY, 10016 (voice) 800.217.1522, (fax) , info@bernlieb.com Lionel Z. Glancy 1801 Avenue of the Stars Suite 308, Los Angeles, CA, 90067 (voice) 310.201.9150, (fax) , Mantese, Miller and Mantese, P.L.L.C. 1301 W. Long Lake, Suite 135, Troy, MI, 48098 (voice) 248.267.1200, (fax) , _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE REFERENCE COMPLAINT
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/26/2002

OTHER DOCUMENTS
CIVIL DOCKET FOR CASE #: 98-CV-70985
Case Name and/or Number: Loesberg v. Credit Acpt Corp, et al
Type: Docket		Date on the document: 03/31/1998
CIVIL DOCKET FOR CASE #: 98-CV-71334
Case Name and/or Number: Slomovics v. Credit Acpt Corp, et al
Type: Docket		Date on the document: 04/07/1998
CIVIL DOCKET FOR CASE #: 98-CV-71285
Case Name and/or Number: Schrager v. Credit Acceptance, et al
Type: Docket		Date on the document: 04/15/1998
CIVIL DOCKET FOR CASE #: 98-CV-70783
Case Name and/or Number: Hoffman, et al v. Credit Acpt Corp, et al
Type: Docket		Date on the document: 04/16/1998

WARNING AND DISCLAIMER OF LIABILITY:
The information included on this Web site, whether provided by personnel employed by Stanford Law School or by third parties, is provided for research and teaching purposes only. Neither Stanford University, Stanford Law School, nor any of their employees, agents, contractors, or affiliates warrant the accuracy or completeness of the information or analyses displayed herein, and we caution all readers that inclusion of any information on this site does not constitute an endorsement of the truthfulness or accuracy of that information. In particular, this Web site contains complaints and other documents filed in federal and state courts, which make allegations that may or may not be accurate. No reader should, on the basis of information contained in or referenced by this Web site, assume that any of these allegations are truthful.

Go to Search page | Go to Case Index page | Back to Top

�