Open Lending Investors' Legal Opportunity: Leading a Securities Fraud Lawsuit with Schall Law Firm

The Open Lending Corporation (NASDAQ: LPRO) faces a growing securities fraud lawsuit alleging that executives misled investors about the company’s financial health, risk models, and loan performance. For investors who suffered losses during the period from February 2022 to March 2025, this legal battle presents a critical chance to recover damages—and those with significant losses can now lead the case.

The Case Against Open Lending

The lawsuit, filed in the U.S. District Court for the Western District of Texas, accuses Open Lending of making materially false or misleading statements about its risk-based pricing models, profit share revenue, and loan valuations. Key allegations include:
- Overstated Risk Models: The company claimed its algorithms accurately assessed loan risk, but critics argue these tools failed to account for rising delinquencies.
- Profit Share Deception: Open Lending allegedly inflated profit share revenue projections, ignoring deteriorating loan performance.
- Undisclosed Loan Losses: Vintage loans from 2021–2022 were reported to have plummeted in value, while 2023–2024 loans underperformed due to flawed borrower risk assessments.

The fallout became public in late 2024 and early 2025, triggering a catastrophic stock decline.

Key Events and Market Impact

• March 17, 2025: Open Lending delayed its 2024 annual report, citing unresolved accounting issues. Shares fell 9.3% to $3.91.
• March 31, 2025: The company revealed a $144 million net loss for Q4 2024, driven by an $81.3 million reduction in profit share revenue and a $86.1 million tax write-off. This disclosure sent shares crashing 57.6% to $1.17 by April 1.

The Legal Deadline: June 30, 2025

Investors who purchased LPRO shares between February 24, 2022, and March 31, 2025, may qualify to join the class action. A critical deadline looms: June 30, 2025, is the last day to file a motion to become the lead plaintiff. This role requires the investor with the largest financial stake in the case to oversee litigation on behalf of all plaintiffs.

Why Schall Law Firm Matters

The Schall Law Firm, representing investors in this case, specializes in securities fraud and has recovered billions for clients. Their focus on global investor rights and experience with post-disclosure market impacts makes them a key player. Investors seeking to lead the case must contact Schall or another law firm (e.g., Glancy Prongay & Murray, Faruqi & Faruqi) by the deadline.

Risks of Missing the Deadline

Failing to act by June 30 could bar investors from recovering losses. The lawsuit’s outcome hinges on proving that misstatements caused the stock’s decline. With shares down over 96% from their 2022 highs, the stakes are enormous.

Conclusion

Open Lending’s legal battle is a stark reminder of the risks of financial misstatements. Investors holding LPRO during the class period face a pivotal moment: those with significant losses can lead the lawsuit and push for accountability. With a $144 million quarterly loss, a 57.6% stock plunge, and ongoing accounting scrutiny, the case underscores the need for transparency.

For affected investors, acting by June 30 is not just an option—it’s a necessity. The road to recovery begins with contacting legal counsel and asserting rights before time runs out.

Investors should consult legal experts to assess eligibility and next steps.