Gainey McKenna & Egleston Announces a Class Action Lawsuit Has Been Filed Against Open Lending Corporation (LPRO)

/EIN News/ -- NEW YORK, May 02, 2025 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Western District of Texas on behalf of all persons or entities who purchased or otherwise acquired Open Lending Corporation (“Open Lending” or the “Company”) (NASDAQ: LPRO) securities between February 24, 2022 and March 31, 2025, both dates inclusive (the “Class Period”).

The Complaint alleges that that: (i) Defendants misrepresented the capabilities of Open Lending’s risk-based pricing model; (ii) Defendants issued materially misleading statements regarding Open Lending’s profit share revenue; (iii) Defendants failed to disclose Open Lending’s 2021 and 2022 vintage loans had become worth significantly less than their corresponding outstanding loan balances; and (iv) Defendants misrepresented the underperformance of Open Lending’s 2023 and 2024 vintage loans.

The Complaint further alleges that on March 17, 2025, Open Lending disclosed that it would be unable to timely file its Annual Report for 2024 as it “require[d] additional time to finalize its accounting and review processes specifically related to its profit share revenue and related contract assets.” On this news, the price of Open Lending stock fell more than 9%.

Then, on March 31, 2025, Open Lending released its fourth quarter and full year 2024 financial results, revealing quarterly revenue of negative $56.9 million due in part to “a $81.3 million reduction in estimated profit share revenues related to business in historic vintages” “primarily due to heightened delinquencies and corresponding defaults associated with loans originated in 2021 through 2024.” Open Lending also disclosed a net loss of $144 million, due to Open Lending being “negatively impacted by the recording of a valuation allowance on [its] deferred tax assets of $86.1 million, which increased [its] income tax expense during the period.” Open Lending additionally announced that it had appointed a new CEO as well as a new COO, effective immediately, both of whom would be replacing defendant Charles D. Jehl, who had been operating as Open Lending’s CEO, COO, and CFO simultaneously. On this news, the price of Open Lending stock fell nearly 58%.

Investors who purchased or otherwise acquired shares of Open Lending should contact the Firm prior to the June 30, 2025 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.