NEW YORK, Jan. 21, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors from Credit Acceptance Corporation (“CAC” or the “Company”) CACC. Those investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, extension 7980.

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

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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 killing thousands of low-income New Yorkers.” high-interest car loans. The press release states: “[t]The lawsuit alleges that CAC forced unaffordable loans on tens of thousands of low-income consumers across the state without considering their ability to fully repay their loans. CAC has misstated important terms of loan agreements, including amounts of principal and interest, and has failed to disclose thousands of dollars in loan fees. In addition, CAC packaged these illicit loans into securities, which it sold to investors. These fraudulent lending practices lowered consumers’ credit ratings 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 seek reimbursement for affected consumers.”

As a result of this news, CAC’s stock price fell $52.99 per share, or 11.61%, to close on January 4, 2023 at $403.49 per share.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading law firms specializing in corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, best known as Dean of the Class Bar Association, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later,…