Faruqi & Faruqi, LLP Probes Investor Claims Against Open Lending - Important Deadline Approaches

Investigation of Open Lending Corporation

Faruqi & Faruqi, LLP, a prominent national securities law firm, is currently conducting an inquiry into potential claims against Open Lending Corporation (NASDAQ: LPRO). This investigation is particularly focused on allegations that the company and its executives may have violated federal securities laws. Investors who acquired shares of Open Lending between February 24, 2022 and March 31, 2025 are encouraged to reach out to discuss their legal options, especially with a crucial deadline approaching on June 30, 2025. This date marks the end of the window to file for the role of lead plaintiff in a federal securities class action against Open Lending.

Background of the Case

The complaint against Open Lending suggests that the company made several misleading statements about its business operations and financial health. Specifically, it is alleged that the company misrepresented the effectiveness of its risk-based pricing models, misled investors about profit-sharing revenues, and failed to disclose significant declines in the value of its vintage loans from 2021 and 2022. These misrepresentations have caused harm to investors when the truth about the company's financial position surfaced.

On March 17, 2025, Open Lending announced a postponement of its earnings release and conference call, which raised red flags in the market. As a result, the stock price plummeted by 9.3%, closing at $3.91 per share the same day. Furthermore, on March 31, 2025, Open Lending disclosed a substantial year-over-year increase in its net losses for Q4 2024, attributed to an increased income tax expense related to the reassessment of deferred tax assets and accompanied by significant changes in company leadership. The fallout from this announcement was severe, with the stock price dropping an astonishing 57.61% to close at $1.17 per share on April 1, 2025.

Call to Action for Investors

Faruqi & Faruqi, LLP urges any investors who believe they may have been adversely affected by Open Lending's actions to reach out. The firm is particularly interested in speaking with whistleblowers, former employees, and any other individuals who might provide pertinent information about the company’s practices.

Investors face the option to either apply to be the lead plaintiff in this class action—representing the interests of their fellow shareholders—or to remain passive members of the class. Notably, engaging in this process does not affect one’s potential recovery if the case proceeds favorably for the plaintiffs. By choosing to act now, affected investors can play a pivotal role in the legal proceedings surrounding Open Lending and potentially recover losses incurred as a result of the alleged misconduct.

How to Get More Information

For those interested in finding out more about the class action against Open Lending Corporation, details can be accessed via the firm's website at www.faruqilaw.com/LPRO. Investors can also contact Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or at 212-983-9330 (Ext. 1310). The firm anticipates that this case could lead to significant developments in the securities landscape related to Open Lending, and they are committed to representing the interests of the aggrieved investors.

In conclusion, this investigation represents a critical juncture for investors affected by Open Lending's operations, and interested individuals should act promptly to protect their rights and interests as the situation unfolds.