Upstart Investors Urged to Contact Law Firm After Class Action Lawsuit Filed

Bragar Eagel & Squire, P.C. announces lawsuit against Upstart Holdings, Inc. over alleged misleading statements

Apr. 9, 2026 at 9:29pm

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A minimalist studio still life photograph featuring a stack of financial documents, a calculator, and a pen arranged elegantly on a clean white background, conceptually representing the abstract corporate strategy and finance issues at the heart of the Upstart lawsuit.A class action lawsuit alleges Upstart misled investors about the performance of its AI-powered lending model, exposing the growing scrutiny facing fintech firms' risk assessment practices.NYC Today

Bragar Eagel & Squire, P.C., a national stockholder rights law firm, has filed a class action lawsuit against Upstart Holdings, Inc. (NASDAQ: UPST) on behalf of investors who purchased Upstart securities between May 14, 2025 and November 4, 2025. The lawsuit alleges that Upstart made false and/or misleading statements about the performance and accuracy of its Model 22 risk assessment system, which had a significant negative impact on the company's revenue results.

Why it matters

This lawsuit highlights ongoing concerns about the transparency and reliability of financial technology companies' lending models and risk assessment algorithms. As Upstart and other fintech firms play a growing role in consumer lending, there are questions about whether their AI-powered systems are accurately evaluating credit risk and macroeconomic conditions.

The details

According to the lawsuit, Upstart allegedly made false and/or misleading statements about its Model 22 system, claiming it was more accurate and likely to increase loan approval rates when in fact it was overly conservative in assessing credit and economic conditions, negatively impacting Upstart's revenue. The lawsuit states that when the true details about Model 22's performance entered the market, investors suffered damages.

  • The class period covers May 14, 2025 to November 4, 2025.
  • Investors have until June 8, 2026 to apply to be the lead plaintiff in the lawsuit.

The players

Upstart Holdings, Inc.

A financial technology company that uses artificial intelligence and machine learning to make lending decisions.

Bragar Eagel & Squire, P.C.

A nationally recognized stockholder rights law firm representing individual and institutional investors in securities, derivative, and commercial litigation.

Brandon Walker

A litigation partner at Bragar Eagel & Squire who is encouraging Upstart investors to contact the firm to discuss their legal options.

Melissa Fortunato

A Bragar Eagel & Squire partner who is working with Brandon Walker on the Upstart lawsuit.

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What they’re saying

“If you purchased or acquired Upstart securities between May 14, 2025 and November 4, 2025 and would like to discuss your legal rights, call Bragar Eagel & Squire partner Brandon Walker or Melissa Fortunato directly at (212) 355-4648.”

— Brandon Walker, Litigation Partner, Bragar Eagel & Squire

What’s next

Investors have until June 8, 2026 to apply to the Court to be appointed as lead plaintiff in the lawsuit against Upstart.

The takeaway

This case highlights ongoing concerns about the transparency and reliability of financial technology companies' lending models and risk assessment algorithms, as Upstart and other fintechs play a growing role in consumer lending. The lawsuit alleges Upstart made misleading statements about the performance of its Model 22 system, which had a significant negative impact on the company's revenue.