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National plaintiffs’ law firm Berger Montague PC announced a class action lawsuit against Upstart Holdings, Inc. (NASDAQ: UPST) on behalf of investors who purchased or acquired Upstart shares during the period from May 14, 2025 through November 4, 2025 (the “Class Period”). Investors who purchased or acquired Upstart securities during the Class Period may, no later than June 8, 2026, seek to be appointed as a lead plaintiff representative of the class.
Headquartered in San Mateo, Calif., Upstart operates an AI-driven lending platform that provides consumer credit solutions and automates loan approvals through its proprietary AI model, Model 22.
According to the complaint, during the Class Period, defendants made materially false and misleading statements about the performance and reliability of Model 22. The complaint alleges that the Company failed to disclose that Model 22 frequently overreacted to negative macroeconomic signals, overstated loan approval accuracy, and negatively impacted Upstart’s revenue, making previously issued FY 2025 guidance unreliable.
On November 4, 2025, Upstart issued a press release reporting third quarter 2025 results. The Company reported Q3 revenue of $277 million, missing its guidance of $280 million and consensus estimates by $2.62 million.
Upstart also revised its Q4 2025 revenue guidance to $288 million and lowered its FY 2025 revenue guidance to approximately $1.035 billion. During the related earnings call, defendants attributed the results to Model 22’s “overresponsive[ness]” and acknowledged that they had “knowingly” calibrated the model to be “more conservative on the credit side,” which the Company said would continue to negatively impact revenues.
Following these disclosures, Upstart’s stock fell $4.49 per share, or 9.71%, to close at $41.75 per share on November 5, 2025.
Berger Montague PC said investors who want to learn more about the action can contact the firm: Andrew Abramowitz at aabramowitz@bergermontague.com or (215) 875-3015, and Caitlin Adorni at cadorni@bergermontague.com or (267) 764-4865.

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