Open Lending(US:LPRO) Prnewswireยท2025-05-21 19:44Core Viewpoint - A securities class action lawsuit has been filed against Open Lending Corporation for misrepresentation and failure to disclose significant financial issues during the Class Period from February 24, 2022, to March 31, 2025 [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who purchased Open Lending securities during the specified Class Period [1][2]. - Investors have until June 30, 2025, to seek appointment as lead plaintiff representative of the class [2]. Group 2: Allegations Against the Company - The complaint alleges that Open Lending misrepresented its risk-based pricing models and profit share revenue [3]. - It is claimed that the company failed to disclose that its 2021 and 2022 vintage loans were worth significantly less than their outstanding balances [3]. - The underperformance of the company's 2023 and 2024 vintage loans was also misrepresented [3]. Group 3: Financial Impact and Company Response - On March 17, 2025, Open Lending announced it would delay its Annual Report for 2024, leading to a 9% drop in share price to $3.91 [4]. - The company reported a quarterly revenue of negative $56.9 million for Q4 2024, attributed to an $81.3 million reduction in estimated profit share revenues due to heightened delinquencies and defaults [5]. - Open Lending identified three factors contributing to the reduction in estimated profit share: deterioration of 2021 and 2022 vintages, underperformance of 2023 and 2024 vintages, and continued elevated delinquencies [5]. - Following the financial disclosure, the share price plummeted 57% to $1.17 on April 1, 2025 [6].