Open Lending(US:LPRO) GlobeNewswire News Roomยท2025-06-24 12:46Core 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]. Company Overview - Open Lending Corporation is headquartered in Austin, Texas, and provides loan services to auto lenders through a cloud-based auto lending protection platform [2]. Allegations - The lawsuit claims that Open Lending misrepresented its risk-based pricing models and profit share revenue, failed to disclose the devaluation of its 2021 and 2022 vintage loans, and misrepresented the underperformance of its 2023 and 2024 vintage loans [3]. Financial Disclosure - On March 17, 2025, Open Lending announced it would delay its Annual Report for 2024 due to issues with accounting and profit share revenue, 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 on loans from 2021 to 2024 [5]. - The decline in estimated profit share was linked to the deterioration of 2021 and 2022 vintages, underperformance of 2023 and 2024 vintages, and continued elevated delinquencies [5]. Market Reaction - Following the financial disclosures, Open Lending's share price plummeted by 57% to close at $1.17 on April 1, 2025 [6].