Following Open Lending's disclosure of its inability to timely file its 2024 Annual Report on March 17, 2025, and the subsequent release of its Q4 and full year 2024 financial results on March 31, 2025, multiple law firms announced or continued investigations into the company. These firms, including the Law Offices of Howard G. Smith, The Law Offices of Frank R. Cruz, and Faruqi & Faruqi, LLP, are investigating potential violations of federal securities laws.
The investigations focus on allegations that Open Lending misrepresented the capabilities of its risk-based pricing models and issued misleading statements regarding its profit share revenue. Specifically, concerns were raised about the underperformance of 2021-2024 vintage loans and the significant negative change in estimated profit share revenues.
The company's Q4 2024 results, which included a negative $81.3 million change in estimated profit share revenue and a $144 million net loss for the full year, are central to these investigations. The simultaneous announcement of new CEO Jessica Buss and COO Michelle Glasl also occurred amidst these financial disclosures.
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