Open Lending Corporation

Case Overview
Status: | Status: Investigating |
Company Name: | Company Name: Open Lending Corporation |
Ticker: | Ticker: LPRO |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP is investigating potential claims against Open Lending Corporation (“Open Lending” or the “Company”) (NASDAQ:LPRO). The investigation concerns whether Open Lending and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices.
On March 17, 2025, Open Lending disclosed that it would be unable to timely file its Annual Report for 2024 as it “requires 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 shares declined by $0.40 per share, from $4.31 per share on March 14, 2025, to close at $3.91 on March 17, 2025.
Then, on March 31, 2025, Open Lending released its fourth quarter and full year 2024 financial results, revealing that quarterly revenue was 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.” Additionally, the Company disclosed a net loss of $144 million, which was “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.” On this news, the price of Open Lending shares declined by $1.59 per share, or approximately 57%, from $2.76 per share on March 31, 2025, to close at $1.17 on April 1, 2025.
On March 17, 2025, Open Lending disclosed that it would be unable to timely file its Annual Report for 2024 as it “requires 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 shares declined by $0.40 per share, from $4.31 per share on March 14, 2025, to close at $3.91 on March 17, 2025.
Then, on March 31, 2025, Open Lending released its fourth quarter and full year 2024 financial results, revealing that quarterly revenue was 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.” Additionally, the Company disclosed a net loss of $144 million, which was “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.” On this news, the price of Open Lending shares declined by $1.59 per share, or approximately 57%, from $2.76 per share on March 31, 2025, to close at $1.17 on April 1, 2025.