LPRO INVESTOR ALERT: Open Lending Corporation Investors with Substantial Losses Have Opportunity to Lead Shareholder Class Action Lawsuit

Core 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]. Company Overview - Open Lending provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers [2]. Allegations - The lawsuit alleges that Open Lending misrepresented the capabilities of its risk-based pricing model and issued materially misleading statements regarding profit share revenue [3]. - It is claimed that Open Lending failed to disclose that its 2021 and 2022 vintage loans were worth significantly less than their outstanding loan balances, and misrepresented the underperformance of its 2023 and 2024 vintage loans [3]. Financial Disclosures - On March 17, 2025, Open Lending announced it would be unable to timely file its Annual Report for 2024, leading to a stock price drop of over 9% [4]. - The financial results for Q4 and full year 2024 revealed a quarterly revenue of negative $56.9 million, attributed to an$81.3 million reduction in estimated profit share revenues due to heightened delinquencies and defaults [5]. - Open Lending reported a net loss of $144 million, impacted by a valuation allowance on deferred tax assets of$86.1 million, which increased its income tax expense [5]. Management Changes - Following the financial disclosures, Open Lending appointed a new CEO and COO, replacing Charles D. Jehl, who had been serving as CEO, COO, and CFO [5]. Legal Process - Investors who purchased Open Lending securities during the class period can seek appointment as lead plaintiff in the class action lawsuit, which allows them to act on behalf of other class members [6].