Class Action Lawsuit Filed Against Upstart Holdings Over Alleged Securities Fraud
A class action lawsuit has been filed against Upstart Holdings, Inc. (NASDAQ: UPST) by Berger Montague, alleging that the company overstated the performance of its AI-driven lending platform, Model 22. The lawsuit claims that the model overreacted to macroeconomic signals, negatively impacting revenue, which was revealed when Upstart reported lower-than-expected Q3 2025 revenue and revised its FY 2025 revenue forecast downward. The stock price dropped significantly following the earnings report.
Tickers: $UPST
Topics: AI lending platform class action lawsuit earnings miss financial fraud investor claims