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Case Status:    SETTLED
On or around 09/25/2001 (Date of order of final judgment)

Filing Date: January 29, 1998

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.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CACC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Michigan
DOCKET #: 98-CV-70417
JUDGE: Hon. Nancy G. Edmunds
DATE FILED: 01/29/1998
CLASS PERIOD START: 09/29/1995
CLASS PERIOD END: 10/22/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lionel Z. Glancy
    1801 Avenue of the Stars Suite 308, Lionel Z. Glancy, CA 90067
    310.201.9150 ·
No Document Title Filing Date
COURT: E.D. Michigan
DOCKET #: 98-CV-70417
JUDGE: Hon. Nancy G. Edmunds
DATE FILED: 11/10/1999
CLASS PERIOD START: 09/29/1995
CLASS PERIOD END: 10/22/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Lionel Z. Glancy
    1801 Avenue of the Stars Suite 308, Lionel Z. Glancy, CA 90067
    310.201.9150 ·
  3. Mantese, Miller and Mantese, P.L.L.C.
    1301 W. Long Lake, Suite 135, Mantese, Miller and Mantese, P.L.L.C., MI 48098
    248.267.1200 ·
No Document Title Filing Date
No Document Title Filing Date