Credit Acceptance reaches agreement to settle securities fraud class-action suit

Credit Acceptance Corp. has reached an agreement in principle to settle a 2020 class-action lawsuit accusing the company of making false and misleading statements and omissions that artificially inflated its stock price.

Under the agreement in principle, Credit Acceptance will pay a total of $12 million to settle claims brought on behalf of all persons and entities that purchased or otherwise acquired the company's common stock from May 4, 2018, through Aug. 28, 2020. The parties have agreed to negotiate in good faith to execute a definitive stipulation of settlement that will be filed with, and subject to approval, by the U.S. District Court for the Eastern District of Michigan.

The company expects that the stipulation of settlement will provide for a full release of claims against all defendants, including the company and its officers, and expressly deny liability, wrongdoing or responsibility by any of the defendants, according to a regulatory filing.