Pomerantz Law Firm Announces the Filing of a Class Action Against Upstart Holdings, Inc. and Certain Officers - UPST
Summary
Pomerantz LLP filed a class action against Upstart Holdings and certain officers in the Southern District of New York on behalf of investors who purchased Upstart securities between May 14 and November 4, 2025. The complaint alleges Upstart materially misled investors about the performance and effects of its AI underwriting Model 22, including overstating approval rates and revenue impact and failing to disclose that the model overreacted to negative macroeconomic signals. Upstart disclosed on November 4, 2025 that Model 22 reduced borrower approvals and conversions, leading to missed Q3 results and a lowered FY2025 revenue guidance, which caused the stock to fall nearly 10%. Investors have until June 8, 2026 to seek appointment as lead plaintiff, and Pomerantz provides contact details and the complaint for those interested in joining the suit.