Open Lending(US:LPRO) GlobeNewswire News Roomยท2025-06-05 17:19Core Viewpoint - Open Lending Corporation is facing a class action lawsuit due to significant financial losses and misleading statements regarding its business operations and revenue forecasts during the class period from February 24, 2022, to March 31, 2025 [1][5]. Financial Performance - On March 17, 2025, Open Lending announced it would delay its Annual Report for 2024, leading to a share price drop of $0.40, or 9.28%, closing at $3.91 [2]. - The following day, the stock fell further by $0.42, or 10.87%, to close at $3.49 [2]. - On March 31, 2025, the company reported a quarterly revenue of negative $56.9 million, primarily due to an $81.3 million reduction in estimated profit share revenues linked to heightened delinquencies and defaults on loans originated between 2021 and 2024 [3]. - The company also reported a net loss of $144 million, impacted by an $86.1 million valuation allowance on deferred tax assets [3]. Share Price Reaction - Following the financial disclosures on April 1, 2025, Open Lending's share price plummeted by $1.59, or 57.61%, closing at $1.17 [4]. Lawsuit Details - The class action lawsuit alleges that Open Lending made materially false and misleading statements regarding its risk-based pricing models, profit share revenue, and the value of its vintage loans [5]. - Specific allegations include misrepresentation of the capabilities of the company's pricing models and failure to disclose the significant depreciation of its 2021 and 2022 vintage loans [5]. Legal Action - Investors who purchased Open Lending securities during the class period have until June 30, 2025, to file a lead plaintiff motion in the class action lawsuit [1][6].