Open Lending(LPRO) Prnewswire·2025-05-31 12:10Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Open Lending Corporation due to alleged violations of federal securities laws, encouraging affected investors to come forward before the June 30, 2025 deadline for lead plaintiff applications in a class action lawsuit [2][4]. Group 1: Allegations Against Open Lending - The complaint alleges that Open Lending and its executives made false or misleading statements and failed to disclose material adverse facts about the company's business and operations [4]. - Specific allegations include misrepresentation of the company's risk-based pricing models, misleading statements regarding profit share revenue, and failure to disclose the significant depreciation of 2021 and 2022 vintage loans [4]. - The complaint also claims that the company misrepresented the underperformance of its 2023 and 2024 vintage loans, leading to materially misleading positive statements about its business prospects [4]. Group 2: Stock Price Impact - On March 17, 2025, Open Lending postponed its earnings release and conference call, resulting in a stock price drop of 3.91 per share [5]. - Following the announcement of a substantial year-over-year increase in net loss for Q4 2024 and significant leadership changes on March 31, 2025, the stock price plummeted by 1.17 per share on April 1, 2025 [6]. Group 3: Legal Proceedings - The lead plaintiff in the class action will be the investor with the largest financial interest who is also adequate and typical of class members, overseeing the litigation on behalf of the class [7]. - Any member of the putative class can move to serve as lead plaintiff or choose to remain an absent class member without affecting their ability to share in any recovery [7].