Faruqi & Faruqi Alerts Open Lending Investors About Class Action Timeline
Faruqi & Faruqi Reminds Investors of Class Action Against Open Lending
Faruqi & Faruqi, LLP, a national leader in securities litigation, has issued a crucial reminder to stakeholders of Open Lending Corporation regarding an impending federal securities class action lawsuit. Investors affected by losses exceeding $75,000 from February 24, 2022, to March 31, 2025, should take note of the June 30, 2025, deadline for appointing a lead plaintiff in this critical case.
As the firm strives to protect the rights of investors, it encourages those who suffered financial losses during this timeframe to engage in discussion about their legal options. Josh Wilson, a partner at the firm, is available for direct consultations and can be reached at 877-247-4292 or 212-983-9330 (Ext. 1310).
Background of the Case
Reports indicate that Faruqi & Faruqi is actively investigating potential claims against Open Lending, identified by its NASDAQ ticker LPRO. This investigation stems from allegations suggesting that Open Lending and its executives might have violated federal securities laws by making inaccurate and misleading statements while failing to disclose critical adverse information about the company's business operations and future prospects.
Key concerns highlighted in the allegations assert that Open Lending's risk-based pricing models were misrepresented, profit share revenue statements were misleading, and loans from 2021 and 2022 were significantly undervalued, contributing to the company's diminished financial standing. Furthermore, the report mentions that Open Lending's positive public assertions lacked a solid foundation, thus misleading stakeholders about the true nature of its operations.
Impact of Misleading Statements
On March 17, 2025, Open Lending announced a postponement of its earnings release and conference call, which triggered significant market response. Following this announcement, the company's stock price plummeted by $0.40, equivalent to a 9.3% drop, closing at $3.91 per share as investors reacted to the expected downturn in financial performance.
A subsequent report on March 31, 2025, disclosed a stark year-over-year increase in net losses for the fourth quarter of 2024, mainly attributed to a valuation allowance on deferred tax assets. This revelation further rattled investor confidence, culminating in a staggering drop in stock price by $1.59, reflecting a 57.61% decline that led to a closing price of $1.17 per share on April 1, 2025.
Legal Recourse and Participation
Faruqi & Faruqi emphasizes that the court-appointed lead plaintiff will be an investor with the most substantial financial interest in the outcome of the lawsuit, responsible for overseeing litigation on behalf of the class. Investors have the option to either express their interest in becoming lead plaintiff or remain an absent class member without compromising their potential recovery from any later settlement or judgment.
The firm is also reaching out to whistleblowers, former employees, and other individuals with relevant information about Open Lending's operational conduct to come forward. Individuals interested in learning more about the class action proceedings against Open Lending can visit the firm's website at www.faruqilaw.com/LPRO or contact partner Josh Wilson directly.
For timely updates regarding this case, stakeholders can follow Faruqi & Faruqi on social media platforms including LinkedIn, X, or Facebook. The law firm advises that all inquiries will be treated with utmost confidentiality.
Conclusion
This case serves as a significant reminder of the importance of transparency in corporate governance and the legal rights of investors. As the deadline approaches, affected parties are encouraged to act swiftly to explore their legal options with Faruqi & Faruqi.