Block & Leviton LLP Investigates Credit Acceptance Corporation (CACC) for Possible Securities Laws Violations; Investors Who Lost Money Should Contact the Firm

BOSTON, MA / ACCESSWIRE / May 28, 2020 / Block & Leviton LLP alerts investors in Credit Acceptance Corporation (NASDAQ:CACC) that the firm is investigating possible securities laws violations involving the Company and certain of its executives. Investors who have lost money are encouraged to contact the firm for a free case evaluation.

On March 25, 2020, analyst Citron Research published a report in which Citron first highlighted the steep upward trend in subprime auto loan delinquencies. Citron then observed that CACC has been taking on increasingly risky and lower return loans, "hiding the true volatility of its earnings through aggressive accounting." Citron further called into question the accuracy of the reported book value of CACC's loans.

On April 20, 2020, after the markets closed, the Company disclosed that it would not timely file its quarterly report for the period ended March 31, 2020. In one day, the price of CACC shares fell $40.71 per share, or over 13%.

Then today, May 27, 2020, after the markets closed, CACC announced a consolidated net loss of $83.8 million, or $4.61 per diluted share, for the three months ended March 31, 2020 – compared to net income of $164.4 million, or $8.65 per diluted share, for the same quarter in 2019. These quarterly financial results also included "a provision for credit losses of $354.7 million."

CACC investors who have lost money are encouraged to contact Block & Leviton attorneys at (617) 398-5600, via email at cases@blockesq.com, or at https://shareholder.law/cases/?case=cacc.

Block & Leviton LLP (www.blockesq.com) is a nationwide firm dedicated to representing investors and maintaining the integrity of the country's financial markets. The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm's lawyers have recovered billions of dollars for its clients.

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CONTACT:

BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: cases@blockesq.com
SOURCE: Block & Leviton LLP

www.blockesq.com

SOURCE: Block & Leviton LLP

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