UPST Investor Alert: Upstart Holdings Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Executives Allegedly Inflated AI Projections: SueWallSt

Notice to Pension Funds, Asset Managers, and Fiduciaries

NEW YORK, April 16, 2026 /PRNewswire/ -- Institutional investors holding positions in Upstart Holdings, Inc. (NASDAQ: UPST) during the period May 14, 2025 through November 4, 2025 may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.

Shares declined $4.49 per share, or 9.71%, closing at $41.75 on November 5, 2025, after Upstart revealed its flagship AI underwriting model had been suppressing loan approvals and conversion rates throughout Q3 2025. The Company simultaneously cut FY 2025 fee revenue guidance by $44 million, from $990 million to $946 million. The window to apply for lead plaintiff closes on June 8, 2026.

Notice to Institutional Holders

Pension funds, endowments, mutual funds, and other fiduciaries that held UPST shares during the Class Period face a distinct set of considerations. A fiduciary that purchased shares while the Company's AI model performance was allegedly overstated may have acquired those shares at artificially inflated prices. Evaluating potential recovery is consistent with the duty of prudence owed to plan participants and beneficiaries.

ERISA and Fiduciary Considerations

Institutional holders should be aware that failing to evaluate participation in a securities recovery may itself raise fiduciary questions. The Private Securities Litigation Reform Act gives preference to institutional investors with large losses when selecting lead plaintiffs, providing direct oversight of litigation strategy, settlement negotiations, and counsel selection.

Fiduciary Obligations and Recovery Options

• Institutional purchasers of UPST securities between May 14, 2025 and November 4, 2025 may recover damages attributable to allegedly inflated share prices
• Lead plaintiff appointment gives fiduciaries direct control over case strategy and settlement terms on behalf of the class
• The PSLRA's rebuttable presumption favors institutional applicants with the largest financial interest in the relief sought
• No out-of-pocket costs are required; securities class actions proceed on a contingency basis
• Portfolio managers can request a confidential loss analysis to quantify exposure before deciding whether to seek lead plaintiff status
• Participation does not require court appearances or testimony from institutional representatives in the vast majority of cases

Contact us for institutional recovery options or call (888) SueWallSt.

Portfolio Impact Assessment

The lawsuit contends that throughout the Class Period, Upstart's officers promoted Model 22 as a breakthrough that was driving higher approval rates and accelerating revenue growth, while allegedly failing to disclose the model's tendency to overreact to macroeconomic signals. Upstart raised its FY 2025 revenue guidance to $1.055 billion in August 2025, only to cut it to $1.035 billion three months later when the model's conservatism could no longer be concealed.

"Institutional investors play a critical role in securities class actions. Their participation ensures that the class is represented by sophisticated parties with meaningful financial stakes and the resources to oversee complex litigation effectively." -- Joseph E. Levi, Esq.

Case Summary

The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all purchasers of Upstart securities during the Class Period who suffered losses when corrective disclosures revealed alleged deficiencies in the Company's AI underwriting model.

ABOUT LEVI & KORSINSKY, LLP -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the UPST Lawsuit

Q: Who is eligible to join the UPST investor lawsuit? A: Investors who purchased UPST stock or securities between May 14, 2025 and November 4, 2025 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What is the UPST lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is June 8, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of investor's country of residence.

Q: What documents do I need to make a claim? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: Why should investors choose Levi & Korsinsky? A: Ranked among top securities litigation firms by ISS for seven consecutive years. Recovered hundreds of millions for shareholders with extensive federal court experience.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

[email protected]

Tel: (888) SueWallSt

Fax: (212) 363-7171

SOURCE SueWallSt.com