#USA #Austin #Securities Fraud #Berger Montague #Open Lending

Investor Alert: Class Action Against Open Lending Corporation

Berger Montague, a prominent law firm specializing in securities class action lawsuits, has issued a critical advisory for investors regarding Open Lending Corporation (NASDAQ: LPRO). A securities fraud class action has been initiated against the company, prompting investors to consider their rights and potential claims. The deadline for investors to act is set for June 30, 2025.

Background of the Case

The class action lawsuit involves purchasers of Open Lending's securities from February 24, 2022, through March 31, 2025. During this period, the complaint alleges significant misrepresentations by the defendants concerning Open Lending's pricing models and profit-sharing revenues. Specifically, it is claimed that the company failed to disclose critical information regarding the diminishing values of its vintage loans from previous years, leading to investor losses.

Open Lending, which operates from Austin, Texas, offers a platform for auto lenders that enhances loan protection services via its cloud-based solutions. However, recent developments have cast a shadow over the company’s financial stability and overall credibility. Investors became increasingly aware of potential issues on March 17, 2025, when the company announced its inability to file its Annual Report for 2024 due to complications in finalizing accounting related to profit share revenue.

The Revealing Disclosures

Following this announcement, Open Lending's stock price took a hit, dropping by $0.40, or 9%, to close at $3.91 per share. This decline was just the beginning; by March 31, 2025, as the company released its financial results for the fourth quarter and the year, it faced even greater scrutiny. The announcement revealed a staggering negative revenue of $56.9 million, attributed, in part, to an $81.3 million reduction in profit share revenue associated with historical vintages. The company directly cited increased delinquencies and defaults from loans originated between 2021 and 2024 as contributing factors.

Furthermore, Open Lending highlighted the underperformance of its loans from 2023 and 2024, attributing this decline to various issues including a deteriorating portfolio from earlier years. After this announcement, the stock price plummeted further, falling $1.59, or 57%, to a new closing price of $1.17 per share on April 1, 2025.

Importance of Taking Action

For investors who acquired Open Lending securities during the class period, the opportunity to step forward as lead plaintiffs is crucial. A lead plaintiff represents the interests of all affected investors within the class action, and generally, this role is filled by those with the most significant financial stakes in the securities at issue. Interested parties must act promptly; the deadline to file claims or express interest in this class action is June 30, 2025. Berger Montague has established resources for investors wishing to assess their eligibility and rights associated with this lawsuit.

In a time when transparency and honest reporting are paramount, this case underlines the importance of holding companies accountable for their financial disclosures. Investors affected by Open Lending's circumstances are strongly encouraged to seek more information on their rights and potential recovery options as this lawsuit unfolds.

Contact Information

For further details or to learn about your rights as a potential class member, you can contact Andrew Abramowitz or Peter Hamner of Berger Montague directly at their Philadelphia office. They are well equipped to guide investors through this complex process, ensuring that every affected party has the chance to regain losses incurred during this tumultuous period.

As Berger Montague continues its long-standing tradition of advocating for investors, this lawsuit reflects an ongoing effort to promote fair practices within the securities market. Investors have the opportunity to take part in shaping the landscape of corporate accountability through this legal action against Open Lending Corporation.