#USA #Austin #Berger Montague #Open Lending #NASDAQ LPRO

Deadline Approaching for Open Lending Investors

Berger Montague PC has issued a crucial reminder for investors in Open Lending Corporation (NASDAQ: LPRO) regarding a securities class action lawsuit that requires immediate attention. This announcement highlights significant developments surrounding the company, which offers loan services through its cloud-based platform for auto lenders.

Class Period and Legal Considerations

The action, filed on behalf of investors who acquired Open Lending securities between February 24, 2022, and March 31, 2025, has its deadline set firmly for June 30, 2025. Individuals who purchased shares during this period may have the opportunity to be designated as lead plaintiffs in the case, representing the interests of the involved investors.

Those affected are encouraged to reach out to Berger Montague for a comprehensive understanding of their rights. Potential plaintiffs can learn more by clicking through the provided resources or contacting the firm directly.

Company Performance and Investor Concerns

Open Lending is headquartered in Austin, Texas, and has been integral in providing innovative loan services. However, throughout the stated Class Period, the company faced scrutiny over misleading statements related to its financial performance. Investors have raised concerns regarding:
1. Risk-based Pricing Models - Allegations state that the company misrepresented how these models functioned, potentially leading to misguided investment decisions.
2. Profit Share Revenue - There were claims that Open Lending misled investors about the true nature of its profit-sharing arrangement, casting doubt on its revenue reliability.
3. Loan Portfolio Valuation - Allegations surfaced that loans from 2021 and 2022 held substantially decreased values compared to their outstanding balances, a critical point as it undermines the company's financial stability.
4. Underperformance Issues - The company reportedly failed to adequately disclose underwhelming performance from loans approved in 2023 and 2024, further contributing to a lack of transparency.

Events Triggering Disclosure

The situation escalated on March 17, 2025, when Open Lending publicly acknowledged delays in filing its pivotal Annual Report for 2024. The necessity for additional time to finalize accounting procedures related to profit share revenue raised red flags. Following this, the stock price experienced a notable decline, dropping 9% to close at $3.91 per share.

A more alarming revelation occurred on March 31, 2025, when the company released its quarterly and full-year financial results depicting dismal figures, including a staggering negative revenue of $56.9 million. Analysts pointed to multiple factors, each indicating severe issues within the company’s vintage loans and identifying concerning trends in delinquency and default rates from loans issued in prior years.

Leadership Changes in Response to Crisis

In the aftermath of these announcements, Open Lending took significant steps to restore stakeholder confidence by appointing a new Chief Executive Officer and Chief Operating Officer. However, the damage seemed done, as the stock plummeted again, marking a 57% decrease to $1.17 per share by April 1, 2025.

Importance of Class Action Participation

For members who might reconsider their options, being recognized as a lead plaintiff involves serving as a representative to ensure the class's interests are appropriately advocated in court. Even if one chooses not to lead, participating means they could still benefit from any potential recovery achieved in these proceedings.

Given the gravity of the situation, Berger Montague, a law firm esteemed in class-action litigation, encourages those affected to contact them without delay. They possess a rich history of representing investors and navigating the complexities of securities law. Investors are reminded that the final date to act is rapidly approaching, making prompt action essential.

For further inquiries or to assert your rights, please reach out to:

• - Andrew Abramowitz: andrew@bm.net or (215) 875-3015
• - Peter Hamner: peter@bm.net

With the stakes at this level, potential plaintiffs are urged to be proactive about their rights regarding the Open Lending case. This class action is not just a legal formality but a necessary step in seeking justice and clarifying the direction of their investments.