NEW YORK, June 09, 2022 (GLOBE NEWSWIRE) — The law firm Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Upstart Holdings, Inc. (“Upstart”) (UPST) from March 18, 2021 to May 9, 2022, both dates inclusive (the “Class Period”). Investors have until July 12, 2022 to ask the Court to be named lead plaintiff in the lawsuit.

Upstart is a cloud-based artificial intelligence (“AI”) lending platform that partners with banks and credit unions to expand access to affordable credit.

On May 9, 2022, after market close, Upstart announced its first quarter 2022 financial results in a press release. As part of this, the company cut its guidance for fiscal 2022, forecasting revenue of approximately $1.25 billion and a contribution margin of 48%. During the related conference call, Upstart’s CFO cited “rising interest rates and rising consumer delinquencies [as] put downward pressure on conversion. On this news, the Company’s stock price fell $43.52 per share, or approximately 56.42%, from $77.13 per share to close at $33.61 per share on May 10. 2022.

The lawsuit alleges that, throughout the Class Period, the Defendants made false and/or misleading statements and/or failed to disclose that: (1) Upstart’s AI model could not hold adequately accounts for macroeconomic factors such as interest rates that impact the market clearing price for loans; (2) as a result, Upstart suffered a negative impact on its conversion rate; (3) as a result, the Company was reasonably likely to use its balance sheet to finance borrowings; and (4) as a result of the foregoing, defendants’ positive statements about the company’s business, operations and prospects were materially false and/or misleading and/or lacked reasonable basis.

If you have purchased or otherwise acquired Upstart titles, have information or would like to know more about such claims, please contactThomas W. Elrod of Kirby McInerney LLP by email to [email protected]or by completing this contact form, to discuss your rights or interests in relation to these matters at no cost to you.

Kirby McInerney LLP is a New York-based law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website:http://www.kmllp.com.

This press release may be considered attorney advertising in certain jurisdictions under applicable law and ethics rules.

contacts
Kirby McInerney LLP
Thomas W. Elrod, Esq.
212-371-6600
https://www.kmllp.com
[email protected]