We are investigating Credit Acceptance Corporation (CACC) (“Credit Acceptance” or the “Company”) for potential violations of the federal securities laws.
On March 25, 2020, Citron Research published a report highlighting the steep upward trend in subprime auto loan delinquencies, observing that “[o]ver the years [Credit Acceptance] has been taking on riskier and lower return loans and hiding the true volatility of its earnings through aggressive accounting,” and questioning the accuracy of the reported book value of Credit Acceptance’s loans. Then, on April 20, 2020, post-market, Credit Acceptance announced that it would not timely file its quarterly report for the period ended March 31, 2020. On this news, Credit Acceptance’s stock price fell $40.71 per share, or 13.81%, to close at $254.00 per share on April 21, 2020.