Opportunities for Investors to Lead Class Action Against Open Lending Corporation Following Substantial Losses

Investor Alert: Open Lending Corporation Class Action

On May 15, 2025, Robbins Geller Rudman & Dowd LLP issued a critical announcement for investors of Open Lending Corporation (NASDAQ: LPRO). Individuals who purchased or acquired LPRO securities between February 24, 2022, and March 31, 2025, are invited to act as lead plaintiffs in a burgeoning class action lawsuit against the company. This opportunity arises as numerous investors have encountered notable financial losses during the specified class period.

Background of the Case

The lawsuit, officially registered as Bradley v. Open Lending Corporation, No. 25-cv-00650 in the Western District of Texas, alleges severe breaches of the Securities Exchange Act of 1934. According to the allegations, both Open Lending and its key executives failed to accurately represent the company’s risk-based pricing model and misled investors about its profit share revenues.

Among the main accusations are that the company falsely claimed that its vintage loans maintained high values, when in fact they were significantly depreciated. Most notably, after Open Lending announced it could not file its 2024 Annual Report on time due to necessary accounting reviews concerning its profit share revenue, the company’s stock plunged by over 9%, indicating a stark reaction from the market.

Additionally, the subsequent financial disclosures revealed a staggering negative quarterly revenue of $56.9 million, attributed to losses in profit share revenues and increased loan defaults. This grim report culminated in a nearly 58% drop in Open Lending’s stock price on March 31, 2025, following the release of these disappointing financial results.

The Lead Plaintiff Process

Under the Private Securities Litigation Reform Act of 1995, any investor who suffered losses during the class period can step forward as a lead plaintiff in this class action lawsuit. The lead plaintiff is typically the one with the most significant financial stake in the potential recovery and is expected to represent the collective interests of all class members effectively. Importantly, participation in the lawsuit does not hinge upon serving as the lead plaintiff, allowing broader involvement from interested investors.

How to Participate

Investors eager to join this class action are encouraged to collect their information and express their interest no later than June 30, 2025. Interested parties can visit the Robbins Geller website for more information, or directly reach out via phone or email.

By engaging with this lawsuit, investors have a chance to seek accountability for the alleged mismanagement and misrepresentation by Open Lending's leadership. The developments in this case are closely monitored as they pose significant implications for all involved.

About Robbins Geller

Robbins Geller Rudman & Dowd LLP is a prominent law firm renowned for representing investors in cases of securities fraud. With a strong track record, the firm secured over $2.5 billion in recoveries for investors in 2024 alone. The firm boasts extensive resources and expertise, with a staff comprising 200 lawyers across 10 locations, thereby positioning itself as one of the world's leading plaintiff firms in securities litigations.

For more detailed inquiries, interested parties can reach Robbins Geller at their offices or through their official communication channels. This moment serves as a crucial juncture for Open Lending investors, highlighting the importance of vigilance and action in protecting their financial interests.