Investor Alert: Open Lending Corporation Class Action
The law firm Robbins Geller Rudman & Dowd LLP has put forth an important notice for investors regarding Open Lending Corporation (NASDAQ: LPRO). This alert invites those who purchased or acquired shares of Open Lending securities between February 24, 2022, and March 31, 2025, to consider participating in a class action lawsuit. This initiative is particularly relevant for individuals who have experienced significant financial losses during this time frame.
Class Action Lawsuit Overview
The legal case, referenced as
Bradley v. Open Lending Corporation, is officially filed in the U.S. District Court for the Western District of Texas. The lawsuit accuses Open Lending, along with several of its current and former executives, of breaching the Securities Exchange Act of 1934. Investors have until June 30, 2025, to seek lead plaintiff status in this matter, which is a critical position that allows an investor to represent the interests of the entire class.
Allegations Against Open Lending
The
complaint articulates several serious allegations against Open Lending. During the class period, it is claimed the company made numerous false and misleading statements to its investors, primarily regarding its financial health and performance. Key allegations include:
1. Misrepresentation of its risk-based pricing model capabilities.
2. Issuance of misleading statements about the expected profit-share revenue.
3. Failure to disclose drastic decreases in the value of certain vintage loans from 2021 and 2022.
4. Misrepresentation of the underperformance of 2023 and 2024 vintage loans.
The lawsuit notes that these misstatements ultimately contributed to the dramatic decline in Open Lending's stock price, particularly following disclosure of its inability to timely file its 2024 Annual Report due to the need for further review on profit share revenues and contract assets. Following this revelation, Open Lending's stock price fell by over 9%.
Further compounded by dire financial results for the fourth quarter and full-year ending in 2024, the report revealed a staggering negative revenue of $56.9 million stemming from inflated profit-share revenue estimates. The net loss reported was $144 million, coupled with organizational upheaval, indicated by the resignation of their CEO and COO. When these details emerged, Open Lending's stock price again suffered a near 58% drop.
The Role of Lead Plaintiff
Under the
Private Securities Litigation Reform Act of 1995, any investor impacted by these events may apply to act as the lead plaintiff in the class action. A lead plaintiff typically holds the largest financial stake in the case and is expected to represent the interests of the class effectively. This position provides the lead plaintiff the authority to select a law firm of their choice to advocate for investor interests. Importantly, an investor's participation in any future recovery does not hinge on their role as lead plaintiff, ensuring that all parties involved can benefit from any successful outcomes.
About Robbins Geller
Robbins Geller Rudman & Dowd LLP is renowned for its expertise in securities fraud litigation and shareholder representation in class action lawsuits. The firm has secured the highest monetary recoveries for investors in multiple cases over the past few years, firmly establishing its reputation in the legal arena. In 2024, Robbins Geller successfully recovered over $2.5 billion for investors in securities-related cases, underscoring its efficiency and commitment to investor justice.
For more details on how to join the Open Lending class action lawsuit or to connect with legal representatives, interested parties can visit
Robbins Geller's website.
Those with questions or who wish to discuss their potential role in the lawsuit may also contact attorneys J.C. Sanchez or Jennifer N. Caringal at 800-449-4900 or via email.