If you have suffered a loss on your Upstart Holdings, Inc. (“Upstart” or the “Company”) (NASDAQ: UPST) investment, contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below to discuss your rights or interests in the securities fraud class action lawsuit at no cost.

Investors have until June 8, 2026 to ask the Court to appoint them as lead plaintiff. Courts do not consider applications filed after this deadline. The lead plaintiff oversees the litigation on behalf of the class and may influence key decisions, including litigation strategy and settlement. Courts regularly appoint individual investors as lead plaintiffs, not only institutions.

[CONTACT THE FIRM IF YOU SUFFERED A LOSS]

What Is The Lawsuit About?

The lawsuit has been filed on behalf of investors who purchased securities during the period of May 14, 2025 through November 4, 2025, inclusive (“the Class Period”). The lawsuit alleges that (i) Model 22, the Company’s latest iteration of its AI model, frequently overreacted to negative macroeconomic signals in performing its risk-separation processes; (ii) accordingly, Model 22’s overall accuracy and propensity to increase loan approval rates was overstated; and (iii) Model 22’s overly conservative assessment of credit and macroeconomic conditions was having a significant negative impact on Upstart’s revenue results, rendering the Company's previously issued FY 2025 revenue guidance unreliable and/or unrealistic.

On November 5, 2025, Upstart disclosed that it missed third-quarter 2025 expectations and blamed the disappointing results on Model 22, which they revealed had “overreact[ed]” to macroeconomic signals in the quarter, reducing borrower approvals and conversion rates. The Company also acknowledged that they had “knowingly” calibrated their AI model to be “more conservative on the credit side in earlier parts of the quarter”, and that the negative impacts of Model 22’s “overresponsive[ness]” to macroeconomic signals in the quarter would continue to negatively impact revenues in Q4 2025, resulting in Upstart negatively revising FY 2025 financial guidance. On this news, the price of Upstart shares declined by $4.49 per share, or approximately 9.7%, from $46.24 per share on November 4, 2025 to close at $41.75 on November 5, 2025.

[CLICK HERE TO LEARN MORE ABOUT THE CLASS ACTION]

What Should I Do?

If you purchased or otherwise acquired Upstart securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro of Kirby McInerney LLP by email at investigations@kmllp.com, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

[WHAT IS A SECURITIES CLASS ACTION?]

Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.

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