Faruqi & Faruqi Investigates Claims Against Open Lending Corporation Over Alleged False Statements

Faruqi & Faruqi, a national securities law firm, is investigating claims against Open Lending Corporation (LPRO) for allegedly making false and misleading statements about its business and profits. The company's stock price dropped significantly after the firm reported a substantial year-over-year increase in its net loss and disclosed leadership changes. Investors have until June 30, 2025, to seek the role of lead plaintiff in a federal securities class action against the company.

Faruqi & Faruqi, a prominent national securities law firm, is investigating claims against Open Lending Corporation (LPRO) for alleged securities fraud. The firm has accused the company of making false and misleading statements about its business and profits, which may have led to significant losses for investors. The investigation follows a series of financial disclosures and stock price declines.

According to the firm, the allegations center around several key points:
- Misrepresentation of the capabilities of the company's risk-based pricing models.
- Misleading statements regarding the company's profit share revenue.
- Failure to disclose that the company's 2021 and 2022 vintage loans had become significantly less valuable than their outstanding balances.
- Misrepresentation of the underperformance of the company's 2023 and 2024 vintage loans.

These allegations suggest that the company's positive statements about its business, operations, and prospects were materially misleading and lacked a reasonable basis, potentially causing harm to investors.

The investigation follows a series of significant events for the company:
- On March 17, 2025, Open Lending postponed its earnings release and conference call, citing the need for additional time to finalize its financial statements. This announcement led to a stock price drop of $0.40, or 9.3%, to $3.91 per share.
- On March 31, 2025, the company reported a substantial year-over-year increase in its net loss for Q4 2024, largely due to the recognition of a valuation allowance on its deferred tax assets. This disclosure resulted in a further stock price drop of $1.59, or 57.61%, to $1.17 per share.

Investors who suffered losses exceeding $75,000 between February 24, 2022, and March 31, 2025, are encouraged to contact Faruqi & Faruqi partner Josh Wilson directly to discuss their legal rights. The deadline to seek the role of lead plaintiff in the federal securities class action against the company is June 30, 2025.

The firm has recovered hundreds of millions of dollars for investors since its founding in 1995 and has a strong track record in complex securities litigation.

References:
[1] https://www.globenewswire.com/news-release/2025/06/27/3106824/3080/en/Open-Lending-Corporation-Sued-for-Securities-Law-Violations-Investors-Should-Contact-Levi-Korsinsky-for-More-Information-LPRO.html
[2] https://www.businesswire.com/news/home/20250630368625/en/FINAL-DEADLINE-ALERT-Faruqi-Faruqi-LLP-Investigates-Claims-on-Behalf-of-Investors-of-Open-Lending
[3] https://www.tradingview.com/news/reuters.com,2025-06-29:newsml_NFC1BPkvD:0-shareholder-notice-faruqi-faruqi-llp-investigates-claims-on-behalf-of-investors-of-open-lending/