Introduction to the Open Lending Class Action Lawsuit
The Open Lending class action lawsuit seeks to represent purchasers or acquirers of Open Lending Corporation (NASDAQ: LPRO) securities between February 24, 2022 and March 31, 2025, inclusive (the “Class Period”). Captioned Bradley v. Open Lending Corporation, No. 25-cv-00650 (W.D. Tex.), the Open Lending class action lawsuit charges Open Lending and certain of Open Lending’s current and former top executives with violations of the Securities Exchange Act of 1934.
Read on for answers to the six most frequently asked questions by investors about the Open Lending lawsuit.
Open Lending Corporation Company Profile
Open Lending Corporation stands at the forefront of financial technology, offering innovative solutions designed to empower auto lenders across the United States. By providing advanced loan analytics, risk-based pricing, and comprehensive risk modeling, we enable financial institutions to cultivate profitable auto loan portfolios while significantly mitigating risks.
Our expertise extends to default insurance, specifically tailored for near-prime and non-prime borrowers. This strategic approach not only enhances lending capabilities but also opens doors to a broader market.
Target Market
The Company’s include, among others, credit unions, regional banks, finance companies, and OEM captive finance companies.
Business Model
The Company provides automated lending services that can be integrated with lenders’ programs or be used with their own Loan Origination System. Open Lending partners with insurers to provide default insurance, reducing risk for lenders.
Leadership and Governance
- Jessica Buss is the CEO and Chairman of the Board.
- Charles D. “Chuck” Jehl is the Interim CFO and a Board member.
- The company is seeking a permanent CFO.
- Michele Glasl is the Chief Operating Officer.\
Historical Financial Performance
- In 2019, Open Lending facilitated over $1.7 billion in auto loans for over 275 financial institutions.
- The company reported negative results in late 2024 and early 2025, with revenue declines and net losses, partly due to increased loan delinquencies from older loans.
- Open Lending has implemented new measures and pricing strategies to reduce future revenue volatility and has authorized a $25 million share repurchase program.
Understanding Securities Fraud Class Action Lawsuits
Securities fraud class action lawsuits represent a significant legal mechanism for investors who have suffered financial losses due to corporate malfeasance. These lawsuits, such as the Open Lending class action lawsuit typically arise when a company or its executives engage in deceptive practices that mislead investors about the company’s financial health or prospect.
The goal of such litigation is to hold the perpetrators accountable and secure compensation for the affected investors. Securities fraud encompasses a range of activities, including insider trading, false financial statements, and misleading disclosures, all of which can severely impact market integrity and investor confidence.
In a class action context, a group of investors collectively brings the lawsuit against the defendant, which could be a corporation or its executives. This collective approach is particularly powerful in the securities realm because it allows individual investors, who might not have the resources to pursue litigation on their own, to band together and seek justice.
The class action mechanism ensures that the legal process is efficient and that the interests of all affected investors are represented.
The complexity of securities fraud class action lawsuits requires plaintiffs to navigate a labyrinth of legal standards and procedural hurdles. One of the most significant challenges is surviving a motion to dismiss, a legal maneuver by the defendants to have the case thrown out before it reaches trial.
Understanding the nuances of these lawsuits is crucial for any stakeholder involved, as it sets the stage for the strategic decisions that will follow. In the case of the Open Lending class action lawsuit, these elements come into sharp focus, highlighting the importance of a well-crafted legal strategy.
Overview of the Open Lending Lawsuit
The Open Lending lawsuit centers on allegations of misleading investors through the provision of inaccurate or incomplete information regarding the company’s financial status and operations. Such allegations, if proven true, could result in significant legal and financial consequences for Open Lending. You need to grasp the magnitude of these claims and their potential impact on the company’s future.
Understanding the Open Lending lawsuit requires analyzing the details of the allegations. Investors claim that Open Lending’s disclosures were not as transparent as they should have been, leading to financial losses once the truth was revealed.
Legal experts are examining whether there was a deliberate attempt to mislead stakeholders, which could lead to punitive measures.
For anyone involved in investing, the Open Lending lawsuit serves as a stark reminder of the importance of due diligence and the risks associated with corporate investments. As you navigate through the nuances of this case, consider how transparency and accountability play pivotal roles in maintaining investor trust and confidence in the market.
Allegations in the Open Lending Class Action Lawsuit
Open Lending provides lending enablement and risk analytics solutions to credit unions, regional banks, finance companies, and captive finance companies of automakers.
The Open Lending class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) defendants misrepresented the capabilities of Open Lending’s risk-based pricing model; (ii) defendants issued materially misleading statements regarding Open Lending’s profit share revenue; (iii) defendants failed to disclose Open Lending’s 2021 and 2022 vintage loans had become worth significantly less than their corresponding outstanding loan balances; and (iv) defendants misrepresented the underperformance of Open Lending’s 2023 and 2024 vintage loans.
The Open Lending class action lawsuit further alleges that on March 17, 2025, Open Lending disclosed that it would be unable to timely file its Annual Report for 2024 as it “require[d] 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 stock fell more than 9%, according to the complaint.
Then, on March 31, 2025, the Open Lending class action lawsuit alleges that Open Lending released its fourth quarter and full year 2024 financial results, revealing quarterly revenue of 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.”
Open Lending also disclosed a net loss of $144 million, due to Open Lending being “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,” according to the complaint.
Open Lending additionally announced that it had appointed a new CEO as well as a new COO, effective immediately, both of whom would be replacing defendant Charles D. Jehl, who had been operating as Open Lending’s CEO, COO, and CFO simultaneously, the complaint further alleges.
The Open Lending class action lawsuit alleges that on this news, the price of Open Lending stock fell nearly 58%.
The Lead Plaintiff Process Under the PSLRA and Its Impact on the Open Lending Lawsuit
The Private Securities Litigation Reform Act (PSLRA) of 1995 was enacted to curb frivolous or unwarranted securities lawsuits and to establish a more structured and efficient process for managing class action securities litigation. A key component of the PSLRA is the lead plaintiff process, which designates a lead plaintiff to represent the interests of the entire class in a securities fraud class action lawsuit.
The lead plaintiff is usually the investor or group of investors with the largest financial interest in the case, and who is also deemed capable of adequately representing the interests of the class.
To begin the lead plaintiff process under the PSLRA, a notice must be published within 20 days after a class action lawsuit is filed, informing potential class members of their right to move for appointment as lead plaintiff. Interested parties typically have 60 days from the notice date to file a motion with the court to be appointed as lead plaintiff. The court then reviews the motions and selects the most suitable candidate based on criteria such as financial stake in the outcome and adequacy to represent the class.
In recent cases such as the Open Lending class action lawsuit, this process ensures that those most affected by alleged securities fraud
have a prominent voice in the litigation. The lead plaintiff’s duties include working closely with legal counsel to oversee the litigation, making decisions that affect all class members, and potentially negotiating settlements.
This structured approach aims to screen out less meritorious claims while ensuring that legitimate grievances are pursued efficiently and effectively, ultimately protecting both investors and public companies from undue legal burdens.
The Lead Plaintiff Deadline in the Open Lending Lawsuit
Lead plaintiff motions for the Open Lending class action lawsuit must be filed with the court no later than June 30, 2025. When a securities class action is filed:
- The person who files the first Open Lending lawsuit is required to publish a notice announcing the filing.
- Anyone who wants to be the lead plaintiff on behalf of the class must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.
The Benefits of Serving as a Lead Plaintiff in the Open Lending Lawsuit
- Negotiating more competitive attorney fees and reducing litigation costs.
- Managing the litigation by overseeing the progress of the case and reviewing important filings.
- Participating in mediation and settlement discussions.
- Having a voice in decision-making processes regarding the settlement.
- No financial risk, as lead counsel covers all costs and expenses and are paid only if they secure a settlement or judgment recovery for the class
- Potentially enjoying long-term benefits from governance reform resulting from the litigation.
The Responsibilities the Lead Plaintiff Will Have in the Open Lending Class Action Lawsuit
- Selecting, monitoring, and overseeing Lead Counsel.
- Reviewing and commenting on court filings on behalf of the class.
- Discussing litigation strategies with the Lead Counsel.
- Attending depositions (if necessary) and giving a deposition.
- Attending hearings (if necessary).
- Participating in mediation and the trial (if necessary).
- Provide input on any decision concerning the settlement of the securities class action.
The Eligibility Criteria for Lead Plaintiff Appointment in the Open Lending Class Action Lawsuit
To be eligible for appointment as the lead plaintiff in the Open Lending class action lawsuit, an investor must meet the following criteria:
- Securities Acquisition: The investor must have purchased or acquired Open Lending Corporation (NASDAQ: LPRO) securities between February 24, 2022 and March 31, 2025, inclusive (the “Class Period”).
- Financial Losses: The investor must have suffered financial losses as a direct result of the alleged securities fraud perpetrated by Open Lending and its executives.
- Typicality and Adequacy: The investor’s legal claims must be typical of those asserted on behalf of the class, and they must demonstrate their ability to adequately represent the interests of the entire class through experience, resources, and the absence of conflicts of interest.
It is crucial to note that both domestic and international investors who meet these criteria are eligible to seek appointment as the lead plaintiff in the class action lawsuit, as courts have consistently recognized the rights of non-U.S. investors in securities class actions.
The Legal Requirements for Prevailing in the Open Lending Lawsuit
- Material Misrepresentation or Omission
- Scienter
- Connection to Securities Transaction
- Reliance
- Economic Loss
- Loss Causation
Opting-out of the Open Lending Class Action Lawsuit
Opting out of a class action lawsuit involves an individual choosing not to participate as a member of the class. In the context of the Open Lending class action lawsuit, this means that a shareholder or other affected party would decide to pursue their own separate legal action rather than be part of the collective lawsuit.
Opting out can be a strategic decision based on various factors such as the desire for greater control over the litigation process, potential for a larger individual settlement, or differing personal circumstances that may not align with the class’s claims.
When an individual opts out of a class action, they retain the right to file their own lawsuit against the defendant, in this case, Vestis. This decision must be made within a specified timeframe and in accordance with the procedures outlined by the court overseeing the class action.
It is essential for individuals considering this option to thoroughly evaluate their legal standing and consult with an attorney who can provide guidance tailored to their specific situation.
The Open Lending class action lawsuit, like many class actions, seeks to address grievances shared by a large group of plaintiffs who have been similarly affected by the company’s actions.
While participating in a class action can streamline the litigation process and reduce individual legal costs, opting out allows for a more customized approach to seeking justice and compensation.
This decision should be made carefully, weighing the potential benefits and drawbacks in light of one’s unique circumstances and goals. If you have substantial losses, you may want to consider opting-out, but remember if you do, you will not be able to participate in any settlement in the Open Lending lawsuit.
Tips for Investors to Take to Protect their Interest in the Open Lending Lawsuit
Gathering and Organizing Relevant Evidence
In a securities class action lawsuit just like the Open Lending lawsuit, evidence is the cornerstone of building a compelling case. For shareholders, gathering and organizing relevant evidence is a critical step in substantiating claims of corporate misconduct. The evidence typically revolves around documents and communications that demonstrate the company’s misrepresentations or omissions, as well as the financial harm suffered by shareholders. Below are some steps you should take:
- Compile all financial statements, press releases, analyst reports, emails, and any internal documents that shed light on the alleged wrongdoing alleged in the Open Lending class action lawsuit.
- Meticulously document your investment history with the Open Lending, including dates of stock purchases and sales, quantities, and prices. This information is crucial for calculating damages and proving that the shareholder suffered financial losses as a result of the company’s actions.
- Maintaining detailed records not only strengthens the individual’s position in the lawsuit but also contributes to the overall strength of the Open Lending lawsuit, by providing a clear picture of the impact on shareholders.
- Organizing this evidence in a systematic manner is equally important. Shareholders can create a comprehensive file of all relevant documents, categorized by type and date, to facilitate easy retrieval and review by legal counsel.
This preparation not only aids in the efficient prosecution of the Open Lending lawsuit, but also demonstrates the shareholder’s commitment and readiness to actively participate in the litigation process.
By thoroughly gathering and organizing evidence, shareholders lay a solid foundation for holding corporations accountable and seeking redress for their financial injuries.
Staying Informed: Monitoring Case Developments
In the fast-paced environment of securities class action lawsuits, staying informed about case developments is crucial for shareholders. As the Open Lending class action lawsuit, moves forward, new information and events can significantly impact the strategy and potential outcomes. Open Lending shareholders must actively monitor key milestones, such as court rulings, settlement negotiations, and any changes in the legal landscape. Keeping abreast of these developments ensures that shareholders are well-positioned to make timely and informed decisions.
Effective communication with legal counsel is essential for staying updated on case developments. Attorneys provide regular updates and analyses of the ongoing proceedings, helping shareholders understand the implications of each development. This information is vital for assessing the potential risks and benefits of different courses of action, such as whether to accept a settlement offer or continue pursuing the Open Lending class action lawsuit.
By maintaining open lines of communication with their legal team, shareholders can remain engaged and proactive throughout the litigation process.
Shareholders can also benefit from following news sources and industry reports related to the Open Lending lawsuit and the defendant company. These sources can provide valuable insights into broader market trends, regulatory changes, and public perceptions that may influence the case.
By staying informed, shareholders can better anticipate shifts in the legal and financial landscape, enabling them to adapt their strategies and protect their interests effectively.
In securities class actions, knowledge is power, and staying informed is a key component of successful participation.
Contact Timothy L. Miles Today About an Open Lending Class Action Lawsuit
If you suffered losses in Open Lending stock, call us today for a free case evaluation about an Open Lending Class Action Lawsuit. 855-846-6529 or [email protected] (24/7/365).
Timothy L. Miles, Esq.
Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
300 Centerview Dr. #247
Mailbox #1091
Brentwood,TN 37027
Phone: (855) Tim-MLaw (855-846-6529)
Email: [email protected]
Website: www.classactionlawyertn.com
