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Deadline Alert for Open Lending Investors

Glancy Prongay & Murray LLP has issued an urgent reminder to investors of Open Lending Corporation (NASDAQ: LPRO) regarding an impending deadline. June 30, 2025, marks the last day for potential lead plaintiffs to file their motions in a class action lawsuit against the company. This lawsuit is significant for investors who acquired securities between February 24, 2022, and March 31, 2025, as it scrutinizes alleged securities fraud that led to substantial financial losses.

Background of the Case

On March 17, 2025, just before the market opened, Open Lending informed investors that it would not meet its timeline for submitting its Annual Report for 2024. The delay was attributed to complexities in finalizing its accounting, especially concerning profit share revenues and related contracts. Once this information hit the market, share prices plummeted by 9.28% on the same day, reflecting serious investor concern. The decline continued into the next trading day as prices dipped further.

In a shocking development on March 31, 2025, Open Lending released its Q4 and full-year report for 2024, revealing a staggering quarterly revenue loss of $56.9 million. This substantial negative revenue stemmed from a dramatic drop in estimated profit share revenues, which the company attributed to increased delinquency rates and defaults on loans made between 2021 and 2024. The report highlighted three main factors contributing to this downturn:
1. Loan Performance Deterioration: Loans issued in 2021 and 2022 were found to be worth far less than their outstanding balances, causing a 40% cut in overall revenue estimates.
2. Underperformance of Recent Loans: Issues were also identified with borrowers who were seen as high-risk, further impacting revenue projections.
3. Continued Defaults: Elevated delinquency rates and loan defaults remained a significant concern, accounting for additional losses.

Moreover, the company disclosed a net loss of $144 million due to adjustments on its deferred tax assets, further complicating the financial picture. Following these revelations, Open Lending shares saw a dramatic collapse, closing at $1.17 on April 1, 2025—a staggering 57.61% drop in value compared to the previous trading price.

Reasons for the Lawsuit

The allegations in the class action suggest that the company’s executives provided misleading information and failed to divulge essential adverse details about its financial health and business operations throughout the Class Period. The lawsuit claims that:

• - The risk-based pricing models were misrepresented.
• - Profit share revenues were overstated, misleading investors regarding the company's financial stability.
• - The real state of older loans was concealed, leading to unwarranted investor confidence.

Such misleading practices may have violated federal securities laws, leading many investors to suffer significant financial losses.

How to Get Involved

Investors who purchased Open Lending securities during the Class Period and faced losses are encouraged to take action. The lawsuit allows investors an opportunity to act as lead plaintiffs and potentially recover their losses. Investors must submit requests to be appointed as lead plaintiffs by the deadline.

For those interested in learning more or participating in the class action lawsuit, Glancy Prongay & Murray LLP is available for inquiries. Potential plaintiffs can contact their office for more information regarding the status and expected outcomes of the lawsuit. This class action could provide essential financial redress for those impacted by the alleged securities fraud at Open Lending.

If you're one of the affected investors, reach out to Glancy Prongay & Murray LLP, or consult with your legal advisor to explore your options before it's too late. Stay informed, take action, and seek the justice you deserve.