#USA #New York #Pomerantz Law #Open Lending #LPRO

Investor Alert: Class Action Lawsuit Filed Against Open Lending Corporation

On May 20, 2025, Pomerantz LLP publicly announced that it has initiated a class action lawsuit against Open Lending Corporation, whose stock trades under the ticker symbol LPRO on NASDAQ. The firm is urging investors who have suffered losses in connection with their investment in Open Lending to come forward and join the lawsuit.

This lawsuit arises from allegations that Open Lending and certain executives may have engaged in securities fraud or other unlawful business practices. Investors who acquired Open Lending securities during the class period are encouraged to reach out to Danielle Peyton at Pomerantz Law Firm to become a Lead Plaintiff in this case. Those interested can contact her via email at [email protected] or call 646-581-9980. It’s important for affected investors to provide details such as their mailing address and telephone number along with the amount of shares purchased.

Important Dates and Context

All potential class members should note that the deadline to petition the Court for lead plaintiff status is June 30, 2025. Pomerantz Law Firm has made available a copy of the complaint which can be accessed through their official website at www.pomerantzlaw.com.

The controversy surrounding Open Lending gained traction on March 17, 2025, when the company revealed it would not be able to file its 2024 Annual Report on time. This announcement indicated that additional time was needed to complete the required accounting and review processes, particularly regarding profit share revenue and related contract assets. Following this announcement, Open Lending’s stock experienced a sharp decline of $0.82 per share, which equated to a staggering 19.03% decrease over the following two trading sessions.

Further compounding the situation, on March 31, 2025, Open Lending disclosed its fourth quarter and full year financial results for 2024. The report revealed that the company faced a negative quarterly revenue of $56.9 million, which was partially attributed to an $81.3 million reduction in estimated profit share revenues. This drastic alteration was primarily due to increased delinquencies and defaults tied to loans that originated between 2021 and 2024. In light of these revelations, Open Lending appointed a new Chief Executive Officer and Chief Operating Officer to replace Charles D. Jehl, who had held multiple executive positions within the company until that point.

As a direct result of the financial disclosures and leadership changes, Open Lending's stock plummeted further by $1.59 per share or 57.61%, closing at just $1.17 per share on April 1, 2025. This series of events has put the company under scrutiny, as the board of directors and senior management face questions about their conduct and decisions leading to these financial misfortunes.

Firm Background

Pomerantz LLP, which boasts a significant presence across major cities such as New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is recognized as a leading firm in corporate, securities, and antitrust class litigation. Having been founded by Abraham L. Pomerantz, a pioneer in the field of securities class actions, the firm has upheld its mission for over 85 years by advocating for the rights of victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. Pomerantz has successfully secured considerable financial recoveries for its clients, embodying the legacy set forth by its founder.

For those affected by the Open Lending situation, now is the time to join forces with the Pomerantz Law Firm and take action regarding potential claims. Stay informed and make sure you don't miss the opportunity to participate in this important class action lawsuit.