CACC, PGEN INVESTOR FRAUD ALERT: Hagens Berman, National Trial Attorneys, Updates CACC, PGEN Investors on Securities Class Actions, Encourages Investors with Losses to Contact Firm
October 12, 2020 at 17:53 PM EDT
SAN FRANCISCO, Oct. 12, 2020 (GLOBE NEWSWIRE) -- Hagens Berman updates investors in the following publicly-traded companies and urges investors who have suffered significant losses to contact the firm. Further details about the cases can be found at the links provided.
Credit Acceptance Corp. (CACC) Securities Fraud Class Action:
The Complaint alleges that, throughout the Class Period, Defendants misrepresented and concealed that: (1) CACC topped off packaged and securitized pools of loans with higher-risk loans; (2) the company made high-interest subprime auto loans it knew borrowers could not repay; (3) borrowers were subject to hidden finance charges, resulting in loans exceeding the state law mandated usury rate ceiling; (4) the company engaged in illegal debt collection practices; and, (5) that the company was likely to face regulatory scrutiny and possible penalties.
Investors allegedly began to learn the ugly truth on Aug. 28, 2020, when the Massachusetts Attorney General sued Credit Acceptance. The AG alleged that since 2013 the company topped off packaged and securitized loan pools with higher-risk loans despite telling investors otherwise. The AG also alleged Credit Acceptance’s business model is predicated on making loans to borrowers who are unlikely to repay them then engaging in abusive or unlawful debt collection practices to make money.
This news sent the price of Credit Acceptance shares crashing $85.36 lower, or over 18%, during the next two trading days.
“We’re focused on investors’ losses and proving Credit Acceptance concealed its deceptive and illegal lending and collection practices,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Credit Acceptance investor, click here to discuss your legal rights with Hagens Berman.
Precigen, Inc. (PGEN) Securities Fraud Class Action:
The complaint alleges that Defendants misrepresented and concealed that: (1) the Company was using pure methane as feedstock for its announced yields for its methanotroph bioconversion (“MCB”) platform instead of natural gas; (2) yields from natural gas as a feedstock were substantially lower than the announced pure methane yields; (3) due to the substantial price difference between pure methane and natural gas, pure methane was not a commercially viable feedstock; (4) the Company’s 1Q 2018 financial statements were false; (5) the Company had material weaknesses in its internal controls over financial reporting; and (6) the Company was under investigation by the SEC since October 2018.
Investors allegedly began to learn the truth through a series of disclosures beginning on Aug. 9, 2018, when the company announced that its 1Q 2018 financial results could no longer be relied on. In its restated 1Q 2018 results, the company made significant changes to deferred revenue, collaboration and licensing revenues and accumulated deficit, as well as admitted to material weaknesses in its internal controls over financial reporting.
Then, on Mar. 2, 2020, the company disclosed it received a subpoena in Oct. 2018 from the SEC concerning Precigen’s MCB-related disclosures.
Finally, on Sept. 25, 2020, the SEC issued a cease and desist order involving “inaccurate reports concerning the company’s purported success converting relatively inexpensive natural gas into more expensive industrial chemicals using a proprietary [MCB] program.”
“We’re focused on investors’ losses and proving that Precigen cooked its books and promoted fake technology,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Precigen investor and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Credit Acceptance and/or Precigen should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email CACC@hbsslaw.com and/or PGEN@hbsslaw.com.
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