Upstart Holdings, Inc. Class Action Lawsuit - UPST
- Company Name
- Upstart Holdings, Inc.
- Stock Symbol
- Class Period
- November 9, 2021 to May 9, 2022
- Motion Deadline
- July 12, 2022
- Northern District of California
The Upstart class action lawsuit seeks to represent purchasers of Upstart Holdings, Inc. (NASDAQ: UPST) securities between November 9, 2021 and May 9, 2022, inclusive (the “Class Period”). Commenced on May 13, 2022, the Upstart class action lawsuit – captioned Ward v. Upstart Holdings, Inc., No. 22-cv-02856 (N.D. Cal.) – charges Upstart and certain of its top executive officers with violations of the Securities Exchange Act of 1934.
If you suffered significant losses and wish to serve as lead plaintiff of the Upstart class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at email@example.com. Lead plaintiff motions for the Upstart class action lawsuit must be filed with the court no later than July 12, 2022.
CASE ALLEGATIONS: Upstart is a cloud-based artificial intelligence (“AI”) lending platform. Upstart claims that “AI lending enables a superior loan product with improved economics that can be shared between consumers and lenders.” Moreover, Upstart “leverage[s] the power of AI to more accurately quantify the true risk of a loan.” Upstart recognizes revenue primarily from fees paid by banks.
The Upstart class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Upstart’s AI model could not adequately account for macroeconomic factors such as interest rates that impact the market-clearing price for loans; (ii) as a result, Upstart was experiencing negative impact on its conversion rate; (iii) thus, Upstart was reasonably likely to use its balance sheet to fund loans; and (iv) consequently, defendants’ positive statements about Upstart’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
On May 9, 2022, Upstart announced its first quarter 2022 financial results in a press release. Therein, Upstart reduced its fiscal 2022 guidance, expecting revenue of approximately $1.25 billion and contribution margin of 48%. During the related conference call, Upstart’s Chief Financial Officer cited “rising interest rates and rising consumer delinquencies putting downward pressure on conversion.” On this news, Upstart’s stock price fell approximately 56%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Upstart securities during the Class Period to seek appointment as lead plaintiff in the Upstart class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Upstart class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Upstart class action lawsuit. An investor’s ability to share in any potential future recovery of the Upstart class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the 2021 ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors last year alone – more than triple the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.