06/11/2025 | Press release | Distributed by Public on 06/11/2025 12:52
Open Lending may have been in the business of protecting lenders, but now its shareholders need some protection of their own. For years, the company hyped the strength of its pricing models . . . but those models turned out to be subprime, causing things to vault out of control fast. LRPO shares nosedived more than 50%, and now investors are taking action with a class-action against the company.
The lawsuit alleges Open Lending misled investors about the reliability of its loan pricing models for near-prime borrowers. According to the complaint, loans from 2021-22 were already deteriorating as used car values dropped. Even worse, loans from 2023-24 performed terribly, tied to high-risk borrower pools. Despite all the warning signs, Open Lending insisted everything was fine.
In March 2025, investors learned the truth after Open revealed a massive revenue revision, a gigantic net loss, and a mass executive exodus. Investors fled, too, and shares plummeted 57% in a single day. Now more investors are joining the lawsuit.