PHILADELPHIA, May 2, 2025 -- Berger Montague PC advises investors that a securities class action lawsuit has been filed against Open Lending Corporation ("Open Lending" or the "Company") (NASDAQ: LPRO) on behalf of purchasers of Open Lending securities between February 24, 2022 through March 31, 2025, inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Open Lending securities during the Class Period may, no later than JUNE 30, 2025, seek to be appointed as a lead plaintiff representative of the class. To learn your rights, CLICK HERE.
Headquartered in Austin, Texas, Open Lending offers loan services to auto lenders through its cloud-based auto lending protection platform.
According to the complaint, throughout the Class Period, Defendants: (1) misrepresented the Company's risk-based pricing models; (2) misled investors regarding the Company's profit share revenue; (3) failed to disclose that Open Lending's 2021 and 2022 vintage loans had become worth significantly less than their outstanding loan balances; and (4) misrepresented the underperformance of the Company's 2023 and 2024 vintage loans.
Investors began to learn the truth on March 17, 2025, when Open Lending 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."
On this news, the Company's share price fell $0.40, or 9%, to close at $3.91 per share on March 17, 2025.
Then, on March 31, 2025, Open Lending 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 contributing factors to the reduction of estimated profit share: (i) a "deterioration of the Company's 2021 and 2022 vintages," resulting in loans which were "worth significantly less than their corresponding outstanding loan balances"; (ii) "two cohorts of borrowers… that caused its 2023 and 2024 vintages to underperform"; and (iii) "continued elevated delinquencies and ultimate defaults."
Also on that date, the Company announced that it had appointed a new Chief Executive Officer and a new Chief Operating Officer.
On this news, Open Lending's share price fell $1.59, or 57%, to close at $1.17 per share on April 1, 2025.
To learn your rights or for more information, CLICK HERE or please contact Berger Montague: Andrew Abramowitz at aabramowitz@bm.net or (215) 875-3015, or Peter Hamner at phamner@bm.net.
A lead plaintiff is a representative party who acts on behalf of all class members in directing the litigation. The lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. The lead plaintiff selects counsel to represent the lead plaintiff and the class and these attorneys, if approved by the court, are lead or class counsel. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
Berger Montague, with offices in Philadelphia, Minneapolis, Delaware, Washington, D.C., San Diego, San Francisco and Chicago, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
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