Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Open Lending Corporation (LPRO)

Core Viewpoint - A securities class action lawsuit has been filed against Open Lending Corporation for alleged misrepresentations and failures to disclose critical financial information during the class period from February 24, 2022, to March 31, 2025 [1] Allegations - Defendants misrepresented the capabilities of Open Lending's risk-based pricing model [2] - Defendants issued materially misleading statements regarding Open Lending's profit share revenue [2] - Defendants failed to disclose that Open Lending's 2021 and 2022 vintage loans had significantly decreased in value compared to their outstanding loan balances [2] - Defendants misrepresented the underperformance of Open Lending's 2023 and 2024 vintage loans [2] Financial Disclosures - On March 17, 2025, Open Lending announced it would be unable to timely file its Annual Report for 2024, citing the need for additional time to finalize accounting processes related to profit share revenue, resulting in a stock price drop of over 9% [3] - On March 31, 2025, Open Lending reported a quarterly revenue of negative $56.9 million, attributed to an$81.3 million reduction in estimated profit share revenues due to increased delinquencies and defaults on loans from 2021 to 2024 [4] - The company disclosed a net loss of $144 million, impacted by an$86.1 million valuation allowance on deferred tax assets, which raised its income tax expense [4] - Open Lending appointed a new CEO and COO, replacing Charles D. Jehl, who had been serving multiple roles [4] - Following these announcements, Open Lending's stock price fell nearly 58% [4] Investor Information - Investors who acquired shares of Open Lending are encouraged to contact the firm before the June 30, 2025, lead plaintiff motion deadline to discuss their rights or interests regarding the class action [5]