Berger Montague Files Class Action Lawsuit Against Upstart Holdings Over Alleged Misstatements About AI Model
Berger Montague PC has filed a class action lawsuit against Upstart Holdings, Inc. (NASDAQ: UPST), alleging that the company made false and misleading statements about the performance of its AI model, Model 22, during the Class Period from May 14, 2025, to November 4, 2025. The lawsuit claims that Upstart failed to disclose that Model 22 overreacted to negative macroeconomic signals, leading to inaccurate loan approvals and negatively impacting revenue. Following the disclosure of these issues, Upstart's stock price fell by nearly 10%.
Tickers: $UPST
Topics: AI model performance class action lawsuit earnings guidance financial fraud investor claims stock price drop