Open Lending(LPRO) Prnewswire·2025-05-29 13:40Core 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]. Summary by Sections Class Action Lawsuit Details - The lawsuit, titled Bradley v. Open Lending Corporation, allows purchasers of Open Lending securities from February 24, 2022, to March 31, 2025, to seek lead plaintiff status by June 30, 2025 [1]. - The firm Robbins Geller Rudman & Dowd LLP is representing the plaintiffs in this case [2]. Allegations Against Open Lending - The lawsuit alleges that Open Lending misrepresented its risk-based pricing model and profit share revenue, failed to disclose significant losses in vintage loans from 2021 and 2022, and misrepresented the performance of loans from 2023 and 2024 [3]. - On March 17, 2025, Open Lending announced it could not timely file its Annual Report for 2024, leading to a stock price drop of over 9% [4]. 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, and announced a change in leadership with a new CEO and COO appointed [5]. Legal Process for Lead Plaintiff - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Open Lending securities during the class period to seek lead plaintiff status, which involves directing the lawsuit on behalf of all class members [6]. About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm in securities fraud and shareholder litigation, having recovered over $2.5 billion for investors in 2024 alone [7].