Class action lawsuit filed against Upstart over misleading AI loan model claims

Berger Montague PC has filed a class action lawsuit against Upstart Holdings on behalf of investors who bought shares between May and November 2025. The suit alleges Upstart made false statements about its AI lending model, Model 22, which overstated loan approval accuracy and hurt revenue. After Upstart missed revenue targets and lowered guidance in November 2025, its stock dropped nearly 10%. Investors have until June 8, 2026, to join the lawsuit or seek lead plaintiff status.