HAGENS BERMAN, NATIONAL TRIAL ATTORNEYS, Encourages Upstart Holdings, Inc. (UPST) Investors with Significant Losses to Contact Firm's Attorneys, Firm Investigating Possible Securities Law Violations
SAN FRANCISCO, May 13, 2022 /PRNewswire/ -- Hagens Berman urges Upstart Holdings, Inc. (NASDAQ: UPST) investors with significant losses to submit your losses now. The firm is investigating possible securities law violations.
Visit: https://www.hbsslaw.com/investor-fraud/UPST
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Upstart Holdings, Inc. (UPST) Investigation:
The investigation focuses on Upstart's claims that its proprietary AI algorithm allows banks to lower loss rates by 75% while keeping approval rates constant, and its assurances that it could "absorb and distribute credit risk."
The company's claims began to come into question on May 9, 2022, when Upstart announced poor Q1 2022 financial results, slashed revenue outlook, and disclosed a whopping $604 million of loans residing on its balance sheet – an amount that is more than twice that held as of Dec. 31, 2021. During the earnings call that day, management disclosed it was using company capital as a "funding buffer for core personal loans."
This news drove the price of Upstart shares crashing 56% lower on May 10, 2022, wiping out over $3 billion of value, and resulted in a slew of analyst downgrades and target price reductions.
"We're focused on investors' losses and whether Upstart misrepresented the effectiveness of its algorithm and the degree to which it was insulated from credit risk," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Upstart Holdings and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Upstart Holdings should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
About Hagens Berman
Hagens Berman is a national law firm with eight offices in eight cities around the country and over eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
SOURCE Hagens Berman Sobol Shapiro LLP
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