Class Action Lawsuit Filed Against Open Lending Corporation: What Investors Need to Know

Investor Alert: Class Action Lawsuit Against Open Lending Corporation

Pomerantz LLP, a renowned law firm specializing in securities litigation, has filed a class action lawsuit against Open Lending Corporation (NASDAQ: LPRO). This was announced on May 26, 2025, amidst investor concerns regarding potential securities fraud and other unlawful business practices by the Company and its executives.

Understanding the Class Action

Investors who incurred losses during the Class Period, defined as the timeframe when Open Lending may have engaged in improper business practices, are encouraged to take action. The deadline to request appointment as Lead Plaintiff is June 30, 2025. Interested parties should reach out to Danielle Peyton at Pomerantz via email at [email protected] or call at 646-581-9980. When contacting, investors are recommended to provide their mailing address, phone number, and number of shares purchased.

Context of the Lawsuit

The lawsuit comes at a time when Open Lending has been facing financial difficulties. On March 17, 2025, the Company announced delays in filing its Annual Report for 2024, citing the need for more time to finalize its accounting processes. Following this disclosure, Open Lending's stock experienced a drastic decline, dropping 19.03% in just two trading days, plummeting from previous highs.

This alarming trend continued when the Company revealed its fourth quarter results on March 31, 2025. Open Lending reported a staggering negative quarterly revenue of $56.9 million, attributed to a significant decrease in estimated profit share revenues, primarily fueled by increasing delinquencies and defaults on loans issued between 2021 and 2024. The situation worsened after the appointment of a new CEO and COO, prompting a further plunge in stock prices, which fell 57.61% to close at $1.17 per share by April 1, 2025.

About Pomerantz LLP

Pomerantz LLP has a long-standing reputation as one of the premier firms focusing on corporate, securities, and antitrust class litigation. Founded over 85 years ago, it has fought aggressively for the rights of victims of corporate misconduct and securities fraud. The firm has a rich history of securing significant settlements for its clients and remains committed to pursuing justice for investors.

Conclusion

For investors affected by the downturn in Open Lending Corporation’s stock value, this class action represents a crucial opportunity to seek legal recourse. Timely action is essential, and those who believe they may qualify as Lead Plaintiffs should not delay in reaching out to Pomerantz LLP. The outcome of this lawsuit could set a precedent for future cases involving corporate transparency and accountability.

For more information, including a copy of the complaint, visit Pomerantz Law Firm. Stay informed and empowered as an investor by understanding your rights and the ongoing legal proceedings surrounding Open Lending Corporation.