Upstart Holdings, Inc.
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
Upstart Holdings, Inc. (UPST) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants failed to disclose to investors that Upstart’s AI model could not adequately account for macroeconomic factors such as interest rates that impact the market-clearing price for loans. In addition, the Company was experiencing negative impact on its conversion rate and reasonably likely to use its balance sheet to fund loans.
On May 9, 2022, Upstart announced its first quarter 2022 financial results, reducing its fiscal 2022 guidance, expecting revenue of approximately $1.25 billion and contribution margin of 48%. During the related conference call, Upstart’s Chief Financial Officer indicated that the “balance of loans, notes, and residuals at the end of the quarter was … up to $604 million from $261 million in Q4,” citing “rising interest rates and rising consumer delinquencies [as] putting downward pressure on conversion.” On this news, the Company’s stock price fell $43.52, or 56%, to close at $33.61 per share on May 10, 2022.
