#USA #Securities Fraud #San Mateo #Berger Montague #Upstart Holdings

Berger Montague Files Class Action Lawsuit Against Upstart Holdings

In a significant legal move, Berger Montague PC, a prominent plaintiffs’ law firm based in Philadelphia, has announced a class action lawsuit against Upstart Holdings, Inc. (NASDAQ: UPST). This legal action targets investors who bought shares between May 14, 2025, and November 4, 2025. The lawsuit alleges that Upstart misled investors about the performance of its AI-driven lending platform, known as Model 22.

Understanding the Allegations

The complaint asserts that Upstart’s management overstated the capabilities and performance of its proprietary Model 22 while failing to disclose critical information about the model's overreaction to macroeconomic signals. This overreaction allegedly had significant negative repercussions on the company's revenue.

Upstart, which is headquartered in San Mateo, California, specializes in automating loan approvals through AI technology. However, disclosures made on November 4, 2025, revealed significant concerns regarding the company's revenue forecasts and operational health. For instance, Upstart reported a third-quarter revenue of $277 million, which was below both guidance and analysts’ expectations. Furthermore, the company revised its full-year revenue estimate downward from $1.055 billion to $1.035 billion.

During an earnings call, Upstart acknowledged that Model 22 exhibited "more conservative" credit assessments, which contributed to the project’s lackluster performance. Following these disclosures, Upstart’s stock price fell sharply by 9.71%, closing at $41.75 per share on November 5, 2025.

Steps for Investors

Investors who purchased Upstart securities during the specified class period have until June 8, 2026, to apply for lead plaintiff status in the class action. This opportunity allows investors to learn more about their rights and potential recovery options by reaching out directly to Berger Montague.

About Berger Montague

Berger Montague focuses on complex civil litigation and has successfully handled hundreds of class action lawsuits across federal and state courts in the United States. With a history of recovering over $50 billion for clients in various legal matters—including securities fraud, antitrust, consumer protection, and more—the firm has established itself as a leader in high-stakes legal arenas.

For those who might have been affected, Andrew Abramowitz and Caitlin Adorni from Berger Montague are available for inquiries, offering guidance on participating in the class action.

Conclusion

This lawsuit against Upstart Holdings underscores the challenges faced by companies that heavily rely on technology for financial processes, particularly when promising innovative solutions like AI in lending. As the legal proceedings unfold, investors will be keenly observing how this case develops and what it may imply for the future of fintech firms that utilize similar technologies.

For further details or to discuss potential participation in the class action, affected investors can reach out to Berger Montague.