#USA #Austin #Securities Class Action #Berger Montague #Open Lending

Open Lending Corporation Faces Class Action Lawsuit

Investors in Open Lending Corporation (NASDAQ: LPRO) should be aware that a securities class action lawsuit has been filed against the company on behalf of those who purchased its securities from February 24, 2022, to March 31, 2025. The deadline to apply as a lead plaintiff in this important case is set for June 30, 2025.

Open Lending Corporation, based in Austin, Texas, specializes in providing auto lending and protection services through its innovative cloud-based platform. However, the lawsuit highlights significant concerns regarding the company's financial disclosures and operational transparency throughout the class period. According to the allegations, Open Lending misrepresented key aspects of its risk-based pricing models, profit share revenue, and failed to reveal substantial declines in the values of previous loan vintages.

The situation escalated on March 17, 2025, when the company announced its inability to file its Annual Report for 2024 on time. This revelation stirred concerns among investors, leading to a notable drop in share prices, which fell by $0.40 or approximately 9%, closing at $3.91 per share. The share price took a further plunge on March 31, 2025, after Open Lending disclosed a staggering negative quarterly revenue amounting to $56.9 million. This loss was attributed to a significant reduction in estimated profit share revenues stemming from previous loan vintages, exacerbated by high delinquency rates associated with loans issued from 2021 to 2024.

The lawsuit points to three critical factors contributing to this bleak financial outlook:
1. Deterioration in Loan Value: Loans from 2021 and 2022 have reportedly decreased in worth, substantially impacting the overall financial health of Open Lending.
2. Underperformance in New Loans: Issues with new borrower cohorts led to underperformance in the company’s 2023 and 2024 loan vintages, which was not previously disclosed.
3. Elevated Defaults: Continuous issues with defaults and delinquencies have heavily influenced the financial landscape for the firm.

Further compounding the challenges, Open Lending announced a leadership shift with the appointment of a new Chief Executive Officer and a Chief Operating Officer during this tumultuous period. Share prices plummeted again, crossing below the $2 mark, revealing investor anxieties over the company's stability.

The importance of this class action lawsuit cannot be overstated. Investors who believe they may have been misled or financially harmed by Open Lending’s practices should seriously consider engaging with Berger Montague, the firm representing affected parties. The role of a lead plaintiff is crucial as it involves being a representative for the class in directing the litigation, usually held by those with significant financial interests in the case. Interested parties can reach out to Berger Montague for more information on their rights and involvement.

Berger Montague has a long-standing history in securities litigation since its inception in 1970, championing the rights of both individual and institutional investors. Their dedication ensures that those affected by corporate governance issues receive proper representation and resolution of their grievances in court. Investors are encouraged to act promptly to safeguard their interests as this deadline approaches.

For further assistance, investors can contact Andrew Abramowitz at Berger Montague, or Peter Hamner for inquiries related to this pressing situation. As this case unfolds, the decisions made now may prove pivotal in determining the outcomes for many investors.

To learn more about your rights or to participate in this class action, please reach out to Berger Montague at [email protected] or call (215) 875-3015.

Don’t miss this opportunity to take a stand – the clock is ticking!