#United States #New York #Class Action #Pomerantz Law #Open Lending Corp

Investor Alert: Class Action Filed Against Open Lending Corporation

In a recent development concerning investor rights, Pomerantz LLP has filed a class action lawsuit against Open Lending Corporation (NASDAQ: LPRO). This action comes after significant losses were reported by investors tied to the company's declining stock performance. Those who have suffered losses during the class period are strongly advised to connect with Pomerantz, as the firm is dedicated to representing the interests of affected shareholders.

Overview of the Lawsuit

The class action revolves around allegations that Open Lending, along with some of its key officers and directors, might have engaged in securities fraud and other illicit business practices. This lawsuit highlights the potential misconduct that could have led to the erosion of shareholder value, raising critical questions about transparency and corporate governance.

The filing highlights a timeline of adverse events that plagued the company recently. Notably, on March 17, 2025, Open Lending announced it would not meet the expected deadline for filing its Annual Report for 2024. The company cited a need for additional time to finalize its accounting processes, particularly concerning its profit share revenue and related contract assets. Following this disclosure, the stock price plummeted by $0.82, a staggering 19.03%, over the next two trading sessions.

In a further blow to investor confidence, the fourth quarter and full-year financial results released on March 31, 2025, revealed alarming figures. Open Lending reported a quarterly revenue loss of $56.9 million, primarily due to an $81.3 million reduction in estimated profit share revenues, largely attributable to escalating delinquencies and defaults from loans originated in recent years (2021-2024). This unforeseen announcement led to an even steeper decline in share value, with the stock plummeting by $1.59, equivalent to 57.61%, by April 1, 2025.

Next Steps for Affected Investors

Affected investors have until June 30, 2025, to request appointment as Lead Plaintiff for the class action. Interested parties are encouraged to reach out to Pomerantz and provide their contact information alongside details regarding their investment in Open Lending securities.

Pomerantz LLP has established a renowned reputation over the years, known for advocating on behalf of victims of securities fraud and corporate misconduct. The firm, founded by the esteemed Abraham L. Pomerantz, has achieved numerous significant recoveries within the realm of corporate law, demonstrating its commitment to justice for its clients.

As a note, attorney advertising and prior outcomes do not guarantee similar results in this case. For more information, potential class members can visit Pomerantz Law Firm to access the Complaint and find resources for participating in the class action.

Contact Information

Investors looking to learn more about their rights in this matter should contact Danielle Peyton at Pomerantz LLP via email at danielle@pomerantzlaw.com or by calling 646-581-9980, extension 7980. The firm also provides a toll-free option at 888-4-POMLAW, allowing easy access for inquiries.

In the coming weeks, the legal proceedings will unfold, and it remains critical for affected shareholders to stay vigilant and informed about their rights and options as this class action progresses. Stay tuned for updates and developments regarding the lawsuit as Pomerantz continues its mission to uphold investor rights.

Conclusion

The situation surrounding Open Lending Corporation serves as a stark reminder of the importance of transparency and accountability in corporate practices. Investors are urged to keep a close watch on these developments and participate in the legal proceedings to ensure their voices are heard.