Open LPRO Securities Fraud Lawsuit: How Delayed Reporting Cost Investors Millions and What to Do Before June 30

The recent securities fraud lawsuit against Open Lending Corporation (NASDAQ: LPRO) has exposed a stark truth about modern investing: delayed financial reporting is not just a compliance oversight—it's a red flag that can obliterate shareholder value. For investors who held LPRO shares between February 24, 2022, and March 31, 2025, the consequences of the company's alleged misdeeds are now clear. This article dissects how Open LPRO's failure to disclose critical financial realities led to a catastrophic collapse in its stock price—and why affected investors must act swiftly to recover losses before the June 30 deadline.

The Allegations: A Pattern of Misrepresentation

At the heart of the lawsuit are four material misrepresentations alleged to have artificially inflated LPRO's stock price during the class period:

1. False Claims About Risk Models: Open LPRO touted its risk-based pricing models as robust and accurate. However, plaintiffs allege these models were flawed, leading to overvalued loan portfolios.
2. Misleading Profit Share Statements: The company allegedly overstated revenue from profit share agreements, omitting risks tied to loan underperformance.
3. Hidden Loan Valuation Issues: Key 2021 and 2022 vintage loans were reportedly worth far less than their stated balances, a fact Open LPRO allegedly concealed.
4. Silence on 2023-2024 Loan Underperformance: Even as newer loans underperformed, the company allegedly continued to present a misleadingly optimistic financial picture.

These misstatements, if proven, created a false narrative of stability. When the truth emerged—triggered by delayed filings of its 2024 annual report—the stock price plummeted, erasing billions in investor wealth.

The Cost of Delayed Reporting: A Recipe for Disaster

The lawsuit underscores how delayed financial reporting can amplify investor harm. Open LPRO's failure to file its 2024 annual report on time, followed by revelations of massive losses and tax asset write-downs, sent shockwaves through the market. By the time investors learned the truth, it was too late to mitigate losses.

The stock's collapse after March 17, 2025, was not an isolated event. This data illustrates how prolonged silence on deteriorating loan portfolios created a bubble of inflated expectations.

Legal and Financial Implications: A Call to Action

For shareholders who sold LPRO shares during the class period (Feb 24, 2022–March 31, 2025), the stakes are high:

• Lead Plaintiff Deadline: June 30, 2025, is the cutoff to apply for lead plaintiff status. While not all investors need this designation, participation in the class action is critical to recover losses.
• Contingency Fee Structure: The law firms handling the case (Gross Law Firm and Kirby McInerney LLP) work on a contingency basis, meaning no upfront costs. Even small investors should reach out to evaluate their eligibility.
• Calculating Damages: Losses are tied to individual purchase/sale dates and the stock's post-March 2025 decline. A shareholder who sold in mid-2023, for instance, may have unknowingly sold into a bubble inflated by misstatements.

Why This Matters for Investors

This case is a cautionary tale about the dangers of relying on incomplete financial disclosures. Delayed reporting and selective transparency are not anomalies—they're warning signs. Investors must:
- Demand Timeliness: Companies that delay filings or avoid hard truths often have deeper issues.
- Scrutinize Loan Portfolios: For firms like LPRO, loan performance and valuation accuracy are non-negotiable metrics.
- Act Before Deadlines: Legal deadlines like June 30 are non-negotiable. Delays in seeking recovery could mean permanent loss of compensation.

Final Advice: Time Is Running Out

If you owned LPRO shares during the class period:
1. Calculate Your Losses: Use tools like to assess exposure.
2. Consult a Lawyer: Even if you don't want lead plaintiff status, registering ensures you can receive any settlement.
3. Stay Informed: The case is pending in the Western District of Texas (Case No. 1:25-cv-00650). Monitor court filings for updates.

The Open LPRO saga is a stark reminder that investor protection hinges on accountability. By acting before June 30, shareholders can reclaim some of what was lost—and send a message that corporate transparency is not optional.

This analysis is for informational purposes only. Investors should consult legal counsel to evaluate their specific circumstances.