INVESTOR ALERT: Securities Class Action Filed Against Upstart Holdings, Inc. – Investors Encouraged to Contact Kirby McInerney LLP

NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed on behalf of investors who acquired Upstart Holdings, Inc. (“Upstart” or the “Company”) (NASDAQ:UPST) securities during the period of May 14, 2025 through November 4, 2025, inclusive (“the Class Period”).

If you suffered a loss on your Upstart investments, you have until June 8, 2026 to request lead plaintiff appointment. Courts do not consider lead plaintiff applications submitted after this deadline. If you choose to take no action, you may remain an absent class member. For more information about the lawsuit:

[CONTACT THE FIRM IF YOU SUFFERED A LOSS]

What Is This Lawsuit About? 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 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.

[LEARN MORE ABOUT THE LAWSUIT]

The Lead Plaintiff Appointment Process. The federal securities laws permit any investor who acquired eligible securities during the class period to seek appointment as lead plaintiff in a class action lawsuit. Courts typically appoint the investor(s) with the largest financial loss in the case and the ability to represent the class rather than investors with simply the largest investment portfolio. Courts regularly appoint individual investors, whether acting alone or as a group, as lead plaintiffs. The rights of any investor who bought shares during the class period are generally already protected. However, lead plaintiffs have the power to influence case strategy and have a say in settlement decisions, as well as decisions concerning allocation of settlement funds among class members.

[LEARN MORE ABOUT THE LEAD PLAINTIFF PROCESS]

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 [e-mail], or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.

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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