Open Lending Corporation Investors Have Opportunity for Class Action Lawsuit Against Company and Executives
On June 23, 2025, Robbins Geller Rudman & Dowd LLP announced significant news for investors of Open Lending Corporation (NASDAQ: LPRO) who have faced financial losses. Those who purchased Open Lending securities between February 24, 2022, and March 31, 2025—a timeframe referred to as the 'Class Period'—now have the opportunity to take action. They can seek appointment as the lead plaintiff in a class action lawsuit against Open Lending and certain current and former executives implicated in alleged violations of the Securities Exchange Act of 1934.
The class action lawsuit, formally known as Bradley v. Open Lending Corporation, No. 25-cv-00650 (W.D. Tex.), is propelled by alarming allegations detailing how Open Lending misrepresented its financial health and the capabilities of its risk-based pricing model. According to the complaint, the company's executives failed to disclose critical information about the company's financial status and misrepresented the performance of their loan vintages, leading to substantial investor losses.
One of the primary issues at hand is that during the specified class period, Open Lending's management was accused of making false statements regarding profit share revenue and the valuation of their vintage loans for 2021 and 2022, which had depreciated significantly. By the end of the class period, Open Lending faced extensive scrutiny as it announced delays in filing its Annual Report for 2024 due to ongoing concerns related to accounting practices involving profit share revenue and contract assets. This announcement resulted in a significant decline of over 9% in the company’s stock price.
On March 31, 2025, further financial disclosures revealed a staggering negative quarterly revenue figure of $56.9 million, attributing part of this loss to significant delinquencies and defaults on loans from 2021 to 2024. The company's net loss amounted to an astonishing $144 million, largely due to a valuation allowance on their deferred tax assets, which bumped up their income tax expenses.
Effectively, the combination of these announcements led to a stock price drop of nearly 58%, intensifying concerns among investors. It was also reported that Open Lending’s CEO, Charles D. Jehl, alongside other executive positions, was replaced amid this turmoil. These drastic measures raised even more alarm among stakeholders who had put their trust in the company and its leadership.
Robbins Geller specializes in representing investors in securities fraud lawsuits, and with an impressive track record of recovering vast sums for clients—including over $2.5 billion in securities class actions in 2024 alone—the firm is actively inviting shareholders who faced substantial losses to join the action. They encourage potential lead plaintiffs to take part in this legal undertaking to assert their rights and possibly secure compensation for their losses.
Individuals who are interested in assuming the role of lead plaintiff must have a significant financial stake in the action and can choose any law firm to represent them. Fortunately, they need not fear that their recovery will hinge on serving as a lead plaintiff.
If you believe you qualify and wish to explore this opportunity further, Robbins Geller provides an easy avenue for you to express your interest. It is imperative for affected investors to be proactive, given the June 30, 2025 deadline for potential lead plaintiffs in this case. The law firm also allows direct contact via phone or email for any inquiries or further clarification regarding the process and implications.
Robbins Geller, whose reputation in securities litigation is second to none, stands ready to support investors impacted by Open Lending’s alleged misconduct. This case not only highlights the critical need for corporate transparency but also serves as a reminder of the potential risks investors face in the dynamic and often turbulent landscape of the stock market. Investors must remain vigilant and knowledgeable in an atmosphere where integrity in corporate governance can make all the difference in securing their financial futures.
The class action lawsuit, formally known as Bradley v. Open Lending Corporation, No. 25-cv-00650 (W.D. Tex.), is propelled by alarming allegations detailing how Open Lending misrepresented its financial health and the capabilities of its risk-based pricing model. According to the complaint, the company's executives failed to disclose critical information about the company's financial status and misrepresented the performance of their loan vintages, leading to substantial investor losses.
One of the primary issues at hand is that during the specified class period, Open Lending's management was accused of making false statements regarding profit share revenue and the valuation of their vintage loans for 2021 and 2022, which had depreciated significantly. By the end of the class period, Open Lending faced extensive scrutiny as it announced delays in filing its Annual Report for 2024 due to ongoing concerns related to accounting practices involving profit share revenue and contract assets. This announcement resulted in a significant decline of over 9% in the company’s stock price.
On March 31, 2025, further financial disclosures revealed a staggering negative quarterly revenue figure of $56.9 million, attributing part of this loss to significant delinquencies and defaults on loans from 2021 to 2024. The company's net loss amounted to an astonishing $144 million, largely due to a valuation allowance on their deferred tax assets, which bumped up their income tax expenses.
Effectively, the combination of these announcements led to a stock price drop of nearly 58%, intensifying concerns among investors. It was also reported that Open Lending’s CEO, Charles D. Jehl, alongside other executive positions, was replaced amid this turmoil. These drastic measures raised even more alarm among stakeholders who had put their trust in the company and its leadership.
Robbins Geller specializes in representing investors in securities fraud lawsuits, and with an impressive track record of recovering vast sums for clients—including over $2.5 billion in securities class actions in 2024 alone—the firm is actively inviting shareholders who faced substantial losses to join the action. They encourage potential lead plaintiffs to take part in this legal undertaking to assert their rights and possibly secure compensation for their losses.
Individuals who are interested in assuming the role of lead plaintiff must have a significant financial stake in the action and can choose any law firm to represent them. Fortunately, they need not fear that their recovery will hinge on serving as a lead plaintiff.
If you believe you qualify and wish to explore this opportunity further, Robbins Geller provides an easy avenue for you to express your interest. It is imperative for affected investors to be proactive, given the June 30, 2025 deadline for potential lead plaintiffs in this case. The law firm also allows direct contact via phone or email for any inquiries or further clarification regarding the process and implications.
Robbins Geller, whose reputation in securities litigation is second to none, stands ready to support investors impacted by Open Lending’s alleged misconduct. This case not only highlights the critical need for corporate transparency but also serves as a reminder of the potential risks investors face in the dynamic and often turbulent landscape of the stock market. Investors must remain vigilant and knowledgeable in an atmosphere where integrity in corporate governance can make all the difference in securing their financial futures.
Topics Financial Services & Investing）
【About Using Articles】
You can freely use the title and article content by linking to the page where the article is posted.
※ Images cannot be used.
【About Links】
Links are free to use.