An investigation on behalf of investors of Credit Acceptance Corporation (NASDAQ: CACC) shares over potential securities laws violations by Credit Acceptance and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Credit Acceptance Corporation (NASDAQ: CACC) concerning whether a series of statements by Credit Acceptance regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Southfield, MI based Credit Acceptance Corporation provides financing programs, and related products and services to independent and franchised automobile dealers in the United States. Credit Acceptance Corporation reported that its annual Total Revenue rose from over $1.28 billion in 2018 to over $1.48 billion in 2019, and that its Net Income increased from $574 million in 2018 to $656.10 million in 2019.

On August 13, 2020, Credit Acceptance Corporation (NASDAQ: CACC) disclosed that on August 11, 2020, the Company had received subpoenas from the Attorney General of the State of Maryland and from the Attorney General of the State of New Jersey. Describing the subpoenas as 'substantively identical' to one another, Credit Acceptance advised investors that the subpoenas both 'relat[ed] to the Company's repossession and sale policies and procedures' and 'the Company's origination and collection policies and procedures.' Taken together with previously disclosed subpoenas received in March 2016 and April 2020, Credit Acceptance advised investors that the inquiries it faced now related to its operations in 39 states.

Shares of Credit Acceptance Corporation (NASDAQ: CACC) declined from $539 per share on August 11, 2020, to as low as $456.33 per share on August 27, 2020.