Lawsuit filed for Investors who lost money with shares of Open Lending Corporation (NASDAQ: LPRO)

An investor, who purchased shares of Open Lending Corporation (NASDAQ: LPRO), filed a lawsuit over alleged violations of Federal Securities Laws by Open Lending Corporation in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Open Lending Corporation (NASDAQ: LPRO) have certain options and for certain investors are short and strict deadlines running. Deadline: June 30, 2025. NASDAQ: LPRO investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Austin, TX based Open Lending Corporation provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers in the United States.

On March 17, 2025, before the market opened, Open Lending Corporation disclosed that it would be unable to timely file its Annual Report for 2024 as it "require[d] additional time to finalize its accounting and review processes specifically related to its profit share revenue and related contract assets."

Then, on March 31, 2025, after the market closed, Open Lending Corporation released its fourth quarter and full year 2024 financial results, revealing quarterly revenue of negative $56.9 million due in part to "a $81.3 million reduction in estimated profit share revenues related to business in historic vintages" ... "primarily due to heightened delinquencies and corresponding defaults associated with loans originated in 2021 through 2024." The Company identified "three factors primarily contributed to this reduction of estimated profit share." First, a "deterioration of the Company's 2021 and 2022 vintages" resulting in loans which were "worth significantly less than their corresponding outstanding loan balances." This factor accounted for "approximately 40% of the Company's total negative change." Second, the Company "identified two cohorts of borrowers, borrowers with credit builder tradelines and borrowers with fewer positive tradelines, that caused its 2023 and 2024 vintages to underperform." This factor "accounted for approximately 40% of the Company's total negative change." Third, the Company revealed "continued elevated delinquencies and ultimate defaults" which "accounted for approximately 20% of the Company's total negative change." Additionally, the Company disclosed a net loss of $144 million, due to the Company being "negatively impacted by the recording of a valuation allowance on [its] deferred tax assets of $86.1 million, which increased [its] income tax expense during the period."

In a separate announcement, Open Lending Corporation also announced that it had appointed a new Chief Executive Officer and a new Chief Operating Officer, effective immediately, both of whom would be replacing Charles D. Jehl, who had been operating as the Company's Chief Executive Officer, Chief Operating Officer and Chief Financial Officer simultaneously.

Shares of Open Lending Corporation (NASDAQ: LPRO) declined from $21.12 per share on March 01, 2022, to as low as $0.70 per share on April 11, 2025.

The plaintiff claims that between February 24, 2022 and March 31, 2025, the Defendants misrepresented the capabilities of the Company's risk-based pricing models, the Defendants issued materially misleading statements regarding the Company's profit share revenue, the Defendants failed to disclose the Company's 2021 and 2022 vintage loans had become worth significantly less than their corresponding outstanding loan balances, the Defendants misrepresented the underperformance of the Company's 2023 and 2024 vintage loans, and that as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of Open Lending Corporation (NASDAQ: LPRO) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.