Navigating the Open Lending Lawsuit: Protecting Investor Rights in Contingency Litigation

Investors in Open Lending Corporation (NASDAQ: LPRO) now face a critical decision as a securities fraud lawsuit gains momentum, raising urgent questions about risk mitigation, legal recourse, and the importance of acting swiftly to safeguard losses. With a June 30 deadline looming for lead plaintiff motions, the case underscores the evolving landscape of investor rights protection and the strategic role of contingency litigation in recovering financial harm. Here's what investors need to know.

The Allegations: A Web of Misstatements and Omissions

The Rosen Law Firm's lawsuit, filed on behalf of LPRO investors, alleges that the company misled the market during the Class Period (February 24, 2022 – March 31, 2025) through:
1. False claims about risk-based pricing models, which allegedly understated the company's exposure to loan defaults.
2. Misleading statements about profit share revenue, inflating the perceived stability of its income streams.
3. Failure to disclose that 2021–2022 vintage loans were significantly undervalued, with their worth falling far below outstanding balances.
4. Overly optimistic projections for 2023–2024 loans, which underperformed due to undisclosed risks.

These misrepresentations, the lawsuit argues, artificially inflated LPRO's stock price until the truth emerged, causing sharp declines and investor losses.

Why Holding LPRO Securities Post-Class Period is Risky

Even as the lawsuit unfolds, investors who held LPRO stock during the Class Period face lingering risks:
- Reputational damage: The allegations, if proven, could deter future investors, suppressing LPRO's valuation.
- Litigation uncertainty: Outcomes depend on court rulings, but the company may struggle to attract capital until the case resolves.
- Lost opportunity cost: Funds tied up in LPRO could have been reallocated to safer or higher-performing assets.

For those still holding shares, selling may be prudent to avoid further exposure. However, for those who already suffered losses, the class action offers a path to recovery—provided they act promptly.

Rosen Law Firm's Track Record: A Catalyst for Investor Confidence

The Rosen Law Firm's involvement signals credibility, given its history in securities litigation:
- Ranked No. 1 by ISS Securities Class Action Services in 2017, with consistent top-four rankings since 2013.
- Over $438 million recovered for investors in 2019 alone, demonstrating a focus on tangible outcomes.
- Contingency fee model: Investors pay nothing upfront, ensuring access to legal representation regardless of financial means.

This structure lowers barriers to participation, empowering even small investors to join the class action.

Actionable Steps: Maximizing Recovery Before June 30

1. Assess eligibility: If you purchased LPRO shares between February 24, 2022, and March 31, 2025, you qualify to join the class.
2. File by June 30: To be considered a lead plaintiff—the individual who guides the litigation—you must submit a motion by this deadline. While not required to recover, lead plaintiffs amplify the case's impact.
3. Contact Rosen Law: Use their dedicated portal (
   https://rosenlegal.com/submit-form/?case_id=39014), call 866-767-3653, or email case@rosenlegal.com to enroll.

Why the June 30 Deadline Matters

The deadline is non-negotiable. While investors can still join the class after June 30, only those who act by the cutoff can seek lead plaintiff status. This role is critical because the lead plaintiff's decisions shape the case's direction, including settlement terms. Procrastination could mean ceding control to other parties, potentially diluting recovery.

Investment Strategy: Prioritize Protection Over Speculation

• Sell LPRO holdings: If you still own shares, consider exiting to limit further risk.
• Document losses: Preserve trade confirmations and statements to quantify damages for the lawsuit.
• Engage legal counsel: Even if you don't pursue lead plaintiff status, retaining a contingency firm ensures you're represented if the case succeeds.

Conclusion: Act Now, or Risk Losing Your Voice

The Open Lending case is a stark reminder of the fragility of investor trust and the necessity of legal safeguards. With Rosen Law's expertise and the contingency fee model reducing financial risk, eligible investors have a clear path to seek redress. However, time is of the essence: delay beyond June 30 could mean forfeiting the chance to influence outcomes. For those who acted swiftly, this case could set a precedent for holding corporations accountable—and protecting hard-earned capital.

Investors are urged to consult with legal counsel to evaluate their specific circumstances.