Open Lending(LPRO) Prnewswire·2025-05-19 12:05Core Viewpoint - Open Lending Corporation is facing a class action lawsuit for alleged violations of the Securities Exchange Act of 1934, with claims of misleading statements regarding its financial performance and risk analytics solutions [1][3]. Group 1: Lawsuit Details - The class action lawsuit is titled Bradley v. Open Lending Corporation and covers purchasers of Open Lending securities from February 24, 2022, to March 31, 2025 [1]. - Allegations include misrepresentation of Open Lending's risk-based pricing model, misleading statements about profit share revenue, and failure to disclose significant declines in the value of vintage loans from 2021 and 2022 [3][4]. - On March 17, 2025, Open Lending announced it would delay its Annual Report for 2024, leading to a stock price drop of over 9% [4]. Group 2: Financial Performance - On March 31, 2025, Open Lending reported a quarterly revenue of negative 81.3 million reduction in estimated profit share revenues due to increased delinquencies and defaults on loans from 2021 to 2024 [5]. - The company also disclosed a net loss of 86.1 million valuation allowance on deferred tax assets, which increased its income tax expense [5]. - Following these disclosures, Open Lending's stock price fell nearly 58% [5]. Group 3: Lead Plaintiff Process - The Private Securities Litigation Reform Act of 1995 allows investors who purchased Open Lending securities during the class period to seek appointment as lead plaintiff in the lawsuit [6]. - The lead plaintiff represents the interests of all class members and can select a law firm for litigation [6]. Group 4: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [7]. - The firm has been ranked 1 in securing monetary relief for investors in securities class action cases for four out of the last five years [7].