On or around 10/02/2020 (Date of last review)
Filing Date: October 02, 2020
According to the Complaint, Credit Acceptance Corporation is a subprime auto finance company providing loans and other related financial products that enable automobile dealers to sell vehicles to consumers. In 2019, Credit Acceptance funded about 370,000 subprime auto loans nation-wide of which over 95% were subprime loans. A substantial portion of Credit Acceptance’s loans are never repaid. The Company also securitizes and sells its loans to investors.
The Complaint alleges that during the Class Period, Defendants made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and adherence to the appropriate laws and regulations. Specifically, the Complaint alleges Defendants failed to disclose to investors: (i) that the Company was topping off the pools of loans that they packaged and securitized with higher-risk loans; (ii) that Credit Acceptance was making high-interest subprime auto loans to borrowers that the Company knew borrowers would be unable to repay; (iii) that the borrowers were subject to hidden finance charges, resulting in loans exceeding the usury rate ceiling mandated by state law; (iv) that Credit Acceptance took excessive and illegal measures to collect debt from defaulted borrowers; (v) that, as a result, the Company was likely to face regulatory scrutiny and possible penalties from various regulators or lawsuits; and (vi) that, as a result of the foregoing, Defendant’s positive statements about the Company’s business, operations, and adherence to appropriate laws and regulations were materially misleading and/or lacked a reasonable basis.
Company & Securities Information
Defendant: Credit Acceptance Corporation
Industry: Misc. Financial Services
Headquarters: United States
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.
First Identified Complaint
Palm Tran, Inc. Amalgamated Transit Union, et al. v. Credit Acceptance Corporation, et al.
COURT: E.D. Michigan
DOCKET #: 20-CV-12698
JUDGE: Hon. Linda V. Parker
DATE FILED: 10/02/2020
CLASS PERIOD START: 11/01/2019
CLASS PERIOD END: 08/28/2020
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Saxena White PA (New Boca Raton)
The Miller Law Firm, P.C.
First Identified Complaint (FIC) Filings:
Class Action Complaint for Violations of the Federal Securities Laws
U.S. District Court Civil Docket
—Reference Complaint Complaint Related Data is not available
Related District Court Filings
—Related District Court Filings Data is not available