According to the lawsuit, defendants made false and/or misleading statements and/or failed to disclose that:
- Upstart’s AI model could not adequately account for macroeconomic factors such as interest rates that impact the market-clearing price for loans;
- as a result, Upstart was experiencing negative impact on its conversion rate;
- as a result, the Company was reasonably likely to use its balance sheet to fund loans; and
- as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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