UPST Investor News: Robbins LLP is Investigating Upstart Holdings, Inc. (UPST) on Behalf of Shareholders
SAN DIEGO–(BUSINESS WIRE)–$UPST #InvestorsRights–Shareholder rights law firm Robbins LLP is investigating Upstart Holdings, Inc. (NASDAQ: UPST) and its officers and directors to determine whether they breached their fiduciary duties and violated securities laws in making misstatements regarding the Company’s business prospects. Upstart is a cloud-based artificial intelligence (AI) lending platform.
If you would like more information about our investigation of Upstart Holdings, Inc.’s misconduct, click here.
What is this Case About: According to the complaint filed against Upstart, 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.
Next Steps: If you acquired shares of Upstart Holdings, Inc. (UPST) between November 9, 2021 and May 9, 2022, you have legal options. Contact Robbins LLP for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Upstart Holdings, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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Contacts
Aaron Dumas
Robbins LLP
5040 Shoreham Place
San Diego, CA 92122
adumas@robbinsllp.com
(800) 350-6003
www.robbinsllp.com