UPST INVESTOR FRAUD: Hagens Berman, National Trial Attorneys, Encourages Upstart Holdings, Inc. (UPST) Investors with Significant Losses to Contact Firm's Attorneys, Securities Class Action Filed
SAN FRANCISCO, May 19, 2022 /PRNewswire/ -- Hagens Berman urges Upstart Holdings, Inc. (NASDAQ: UPST) investors with significant losses to submit your losses now.
Class Period: Nov. 9, 2021 – May 9, 2022
Lead Plaintiff Deadline: July 12, 2022
Visit: https://www.hbsslaw.com/investor-fraud/UPST
Contact An Attorney Now: [email protected]
844-916-0895
Upstart Holdings, Inc. (UPST) Securities Fraud Class Action:
The litigation focuses on Upstart's claims that its proprietary AI algorithm "enables a superior loan product with improved economics that can be shared between consumers and lenders" and that Upstart "leverage[s] the power of AI to more accurately quantify the true risk of a loan."
The complaint alleges Defendants failed to disclose to investors that: (1) Upstart's AI model could not adequately account for macroeconomic factors such as interest rates that impact the market-clearing price for loans; (2) as a result, Upstart was experiencing negative impacts on its conversion rate; and, (3) as a result, Upstart was reasonably likely to use its balance sheet to fund loans.
Investors began to learn the truth 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 in periods of interest rate fluctuation where the market clearing price is in flux."
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.
Contact:
Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP
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