PHILADELPHIA, April 22, 2026 /PRNewswire/ — National plaintiffs’ law firm Berger Montague PC announces a class action lawsuit against Upstart Holdings, Inc. (NASDAQ: UPST) (“Upstart” or the “Company”) on behalf of investors who purchased or acquired Upstart shares during the period from May 14, 2025 through November 4, 2025 (the “Class Period”).
Investor Deadline: Investors who purchased or acquired Upstart securities during the Class Period may, no later than June 8, 2026, seek to be appointed as a lead plaintiff representative of the class. To learn your rights, CLICK HERE.
Headquartered in San Mateo, Calif., Upstart operates an AI-driven lending platform that provides consumer credit solutions and automates loan approvals through its proprietary AI model, Model 22.
According to the Complaint, throughout the Class Period, defendants made materially false and misleading statements about the performance and reliability of Model 22. Specifically, the Complaint alleges that the Company failed to disclose that Model 22 frequently overreacted to negative macroeconomic signals, overstated loan approval accuracy, and negatively impacted Upstart’s revenue, making previously issued FY 2025 guidance unreliable.
On November 4, 2025, Upstart issued a press release reporting third quarter 2025 results. The Company reported Q3 revenue of $277 million, missing its guidance of $280 million and consensus estimates by $2.62 million. Upstart also revised its Q4 2025 revenue guidance to $288 million and FY 2025 revenue guidance downward to approximately $1.035 billion. During the related earnings call, defendants attributed the results to Model 22’s “overresponsive[ness]” and acknowledged that they had “knowingly” calibrated the model to be “more conservative on the credit side,” which would continue to negatively impact revenues.
Following these disclosures, Upstart’s stock fell $4.49 per share, or 9.71%, to close at $41.75 per share on November 5, 2025.
If you are an Upstart investor and would like to learn more about this action, CLICK HERE or please contact Berger Montague: Andrew Abramowitz at aabramowitz@bergermontague.com or (215) 875-3015, or Caitlin Adorni at cadorni@bergermontague.com or (267)764-4865.
About Berger Montague
Berger Montague is one of the nation’s preeminent law firms focusing on complex civil litigation, class actions, and mass torts in federal and state courts throughout the United States. With more than $2.4 billion in 2025 post-trial judgments alone, the Firm is a leader in the fields of complex litigation, antitrust, consumer protection, defective products, environmental law, employment law, securities, and whistleblower cases, among many other practice areas. For over 55 years, Berger Montague has played leading roles in precedent-setting cases and has recovered over $50 billion for its clients and the classes they have represented. Berger Montague is headquartered in Philadelphia and has offices in Chicago; Malvern, PA; Minneapolis; San Diego; San Francisco; Toronto, Canada; Washington, D.C., and Wilmington, DE.
For more information or to discuss your rights, please contact:
Andrew Abramowitz
Berger Montague
(215) 875-3015
aabramowitz@bergermontague.com
Caitlin Adorni
Berger Montague
(267) 764-4865
cadorni@bergermontague.com
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SOURCE Berger Montague
