Class action filed against Upstart for allegedly misleading investors on AI lending model performance.

A class action lawsuit has been filed against Upstart Holdings, Inc. for allegedly misleading investors about the accuracy and revenue impact of its AI lending model, Model 22. The complaint claims Upstart overstated the model's ability to increase loan approvals and revenue, failing to disclose that it overreacted to negative economic signals, which hurt financial results. After Upstart missed revenue targets and lowered its 2025 guidance, its stock price dropped nearly 10%. Investors who bought shares between May and November 2025 may participate in the lawsuit, with a lead plaintiff deadline of June 8, 2026.