SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Credit Acceptance Corporation - CACC

NEW YORK, Feb. 6, 2023

The investigation concerns whether CAC and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action] 

On January 4, 2023, New York Attorney General Letitia James and the Consumer Financial Protection Bureau ("CFPB") issued a press release announcing that they had sued CAC "for deceiving thousands of low-income New Yorkers into high-interest car loans."  The press release specified that "[t]he lawsuit alleges that CAC pushed unaffordable loans onto tens of thousands of low-income consumers throughout the state without considering their ability to repay their loans in full.  CAC misstated key terms on loan agreements, including the principal and interest amounts, and did not disclose thousands of dollars in credit charges.  In addition, CAC packaged these illegal loans into securities that it sold to investors.  These deceptive lending practices lowered consumers' credit scores and cost New Yorkers millions of dollars.  The lawsuit seeks to end CAC's abusive and deceptive practices, reform or eliminate existing CAC loan agreements, and collect restitution for impacted consumers." 

On this news, CAC's stock price fell $52.99 per share, or 11.61%, to close at $403.49 per share on January 4, 2023.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.