#United States #New York #Pomerantz #Open Lending #LPRO

Pomerantz Law Firm Launches Class Action Against Open Lending Corporation

In a significant development for investors, Pomerantz LLP has announced the filing of a class action lawsuit against Open Lending Corporation (NASDAQ: LPRO). The lawsuit primarily centers around allegations of potential securities fraud and unlawful business conduct by Open Lending and some of its executives.

Background Information

Open Lending Corporation, a notable player in the financial technology space, offers services that streamline the process for auto lenders by assessing credit risk associated with borrowers. It has gained recognition for enhancing the efficiency of loan underwriting. However, recent disclosures have raised alarms among investors, leading to the current legal action by Pomerantz LLP, a firm renowned for its successes in corporate securities litigation.

On March 17, 2025, Open Lending revealed that it would not be able to submit its Annual Report for 2024 on time. This delay was attributed to the need for additional time to finalize its accounting processes, particularly concerning profit share revenue and related contract assets. This revelation triggered immediate repercussions in the stock market. Following the announcement, Open Lending’s stock price plummeted by $0.82 per share, representing a 19.03% decline in just two trading sessions, dropping down to $3.49.

The situation worsened with subsequent financial disclosures. On March 31, 2025, Open Lending reported a stunning quarterly revenue loss of $56.9 million. This downturn was attributed to an $81.3 million adjustment in estimated profit share revenues due to escalating delinquencies and defaults from loans originated between 2021 and 2024. The announcement also included significant organizational changes, with the company appointing a new CEO and COO, replacing Charles D. Jehl, who held multiple roles within the firm, including that of CFO.

As a result of this unfavorable news, Open Lending’s share price fell an alarming $1.59, or 57.61%, culminating in a closing price of $1.17 on April 1, 2025.

Investor Implications

Investors affected by these developments are urged to contact Pomerantz LLP. The firm emphasizes the importance of filing for Lead Plaintiff status for those who purchased or acquired Open Lending Corporation securities during the class period. For individuals wishing to take part, the deadline to request this status is June 30, 2025. Interested parties can reach out to Danielle Peyton at [email protected] or by calling 646-581-9980, with a toll-free option available at 888.4-POMLAW.

The firm has provided a detailed complaint document which can be accessed via their website at pomerantzlaw.com. Pomerantz LLP has been a stalwart in the realm of securities class actions for over 85 years, having recovered substantial damages for victims of fraud and corporate misconduct.

Final Remarks

The unfolding of these events has raised significant concerns among investors regarding the integrity of Open Lending’s operational and financial practices. As this class action progresses, it serves as a vital reminder of the importance of due diligence and vigilance in the investment landscape, particularly in sectors susceptible to financial reporting and operational challenges.

Pomerantz Law Firm is committed to advocating for the rights of those affected and seeks to hold accountable any individuals or entities that engage in unlawful practices impacting shareholders. As the situation develops, investors are encouraged to stay informed and take the necessary steps to safeguard their interests.