PHILADELPHIA, May 5, 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.
Upstart, headquartered in San Mateo, Calif., operates an AI-driven lending platform that automates loan approvals and credit risk assessment through its proprietary Model 22.
The Complaint alleges that defendants overstated the performance of Upstart’s AI-driven lending platform, specifically Model 22, while failing to disclose that the model overreacted to macroeconomic signals, and that this overresponsive[ness] had a significant negative effect on revenue.
The true state of the Company’s operations began to be revealed on November 4, 2025, when Upstart reported Q3 2025 revenue of $277 million, below guidance and consensus estimates. The Company also projected Q4 revenue of $288 million and revised FY 2025 revenue downward to $1.035 billion from prior guidance of $1.055 billion. During the earnings call, defendants admitted that Model 22’s calibration had been “more conservative on the credit side” and that the model’s overresponsive[ness] would continue to negatively impact revenue.
On this news, Upstart’s stock declined $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
