SAN DIEGO–(BUSINESS WIRE)–The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers of Upstart Holdings, Inc. (NASDAQ: UPST) securities between March 18, 2021 and May 9, 2022, both dates inclusive (the “Class Period”) have until July 12, 2022 to seek appointment as lead plaintiff in the Upstart class action lawsuit. Commenced on May 13, 2022, the Upstart class action lawsuit charges Upstart and certain of its top executive officers with violations of the Securities Exchange Act of 1934. The first-filed complaint is captioned Ward v. Upstart Holdings, Inc., No. 22-cv-02856 (N.D. Cal.). A subsequently-filed complaint, Plymouth County Retirement Association v. Upstart Holdings, Inc., No. 22-cv-02973, is also pending in the Northern District of California.
If you suffered significant losses and wish to serve as lead plaintiff of the Upstart class action lawsuit, please provide your information here:
CASE ALLEGATIONS: Upstart is a cloud-based artificial intelligence (“AI”) lending platform. Upstart claims that “AI lending enables a superior loan product with improved economics that can be shared between consumers and lenders.” Moreover, Upstart “leverage[s] the power of AI to more accurately quantify the true risk of a loan.” Upstart recognizes revenue primarily from fees paid by banks.
The Upstart class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Upstart’s AI model could not adequately account for macroeconomic factors such as interest rates that impact the market-clearing price for loans; (ii) as a result, Upstart was experiencing negative impact on its conversion rate; (iii) thus, Upstart was reasonably likely to use its balance sheet to fund loans; and (iv) consequently, defendants’ positive statements about Upstart’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Upstart securities during the Class Period to seek appointment as lead plaintiff. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.
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