Open Lending Investor Drops Suit Over Troubled Loans, Stock Drop

Open Lending Corp. escaped an investor lawsuit alleging the automotive lender servicer misrepresented its profit-sharing revenue and risk-based pricing models while hiding that loans in its historic vintages business were underperforming.

The pension fund leading the proposed class action told the US District Court for the Western District of Texas it was dropping the case without prejudice on Oct. 10. Judge David Alan Ezra had given the Laborers’ District Council and Contractors’ Pension Fund of Ohio until that day to file an amended complaint after a magistrate judge named it lead plaintiff.

• Another investor initiated this lawsuit after Open Lending’s ...