Pomerantz Law Firm Announces the Filing of a Class Action Against Upstart Holdings, Inc.and Certain Officers – UPST
View original at globenewswire.comPomerantz Law Firm Announces the Filing of a Class Action Against Upstart Holdings, Inc.and Certain Officers – UPST NEW YORK, May 19, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Upstart Holdings, Inc…
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Upstart expected to generate Q4 2025 revenue of approximately $288 million
60% confidenceDefendants made materially false and misleading statements regarding Upstart's business, operations, and prospects: (i) Model 22 frequently overreacted to negative macroeconomic signals in its risk-separation processes; (ii) Model 22's overall accuracy and propensity to increase loan approval rates was overstated; (iii) Model 22's overly conservative assessment was having a significant negative impact on revenues, rendering FY 2025 guidance unreliable and/or unrealistic; (iv) as a result, Defendants' public statements were materially false and misleading at all relevant times
60% confidenceUpstart had knowingly calibrated its AI model to be more conservative on the credit side in earlier parts of Q3 2025, and that Model 22's overresponsiveness to macroeconomic signals would continue to negatively impact Q4 2025 revenues
60% confidenceUpstart raised FY 2025 revenue guidance to approximately $1.01 billion, maintaining fee revenue guidance at approximately $920 million
60% confidenceUpstart substantially raised FY 2025 revenue guidance to approximately $1.055 billion with fee revenue of approximately $990 million, attributing the increase to improvements in performance driven by Model 22
60% confidenceUpstart issued FY 2025 financial guidance of approximately $1 billion total revenue and approximately $920 million in fee revenue
60% confidenceModel 22 had overreacted to macroeconomic signals during Q3 2025, reducing borrower approvals and conversion rates and negatively impacting revenues
60% confidenceUpstart's AI models more accurately quantify the true risk of a loan through risk separation, leading to higher approvals and lower interest rates relative to traditional lending practices and providing more predictable returns to capital partners including banks, credit unions, and institutional investors
60% confidenceUpstart negatively revised its FY 2025 revenue guidance to approximately $1.035 billion and reduced fee revenue outlook to approximately $946 million from $990 million
60% confidence