SAN DIEGO–(BUSINESS WIRE)–$UPST #artificialintelligence—The Class: Shareholder rights law firm Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Upstart Holdings, Inc. (NASDAQ: UPST) securities between November 9, 2021 and May 9, 2022, for violations of the Securities Exchange Act of 1934. Upstart is a cloud-based artificial intelligence (AI) lending platform.
If you would like more information about Upstart Holdings, Inc.’s misconduct, click here.
What is this Case About: Upstart Holdings, Inc. (UPST) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants failed to disclose to investors that Upstart’s AI model could not adequately account for macroeconomic factors such as interest rates that impact the market-clearing price for loans. In addition, the Company was experiencing negative impact on its conversion rate and reasonably likely to use its balance sheet to fund loans.
On May 9, 2022, Upstart announced its first quarter 2022 financial results, reducing its fiscal 2022 guidance, expecting revenue of approximately $1.25 billion and contribution margin of 48%. During the related conference call, Upstart’s Chief Financial Officer indicated that the “balance of loans, notes, and residuals at the end of the quarter was … up to $604 million from $261 million in Q4,” citing “rising interest rates and rising consumer delinquencies [as] putting downward pressure on conversion.” On this news, the Company’s stock price fell $43.52, or 56%, to close at $33.61 per share on May 10, 2022.
Next Steps: If you acquired shares of Upstart Holdings, Inc. (UPST) between November 9, 2021 and May 9, 2022, you have until July 12, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Upstart Holdings, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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