Snapshot from Jun 25, 2026 at 22:38 UTC. For live data and tracking: View Live
Events / Business / Upstart Holdings Faces AI Model Lawsuits
Business class action lawsuit

Upstart Holdings Faces AI Model Lawsuits

Analysis based on 108 articles · First reported Apr 09, 2026 · Last updated Jun 08, 2026

Sentiment
-70
Attention
6
Articles
108
Market Impact
Direct
Live prominence charts, article sentiment distribution, and event development timeline available on the NewsDesk Dashboard
Market Impact

The multiple class action lawsuits against Upstart Holdings for alleged securities fraud have a significant negative impact on the company's stock price and investor confidence. The allegations regarding the overstated accuracy and negative impact of its Model 22 AI on revenue guidance suggest potential financial liabilities and reputational damage for Upstart Holdings.

financial services legal services
Event Summary

Multiple law firms, including Rosen Law Firm, Pomerantz LLP, The Schall Law Firm, Bronstein, Gewirtz & Grossman, LLC, Faruqi & Faruqi, Bragar Eagel & Squire, and DJS Law Group, have filed or are encouraging investors to join class action lawsuits against Upstart Holdings. These lawsuits allege that Upstart Holdings made false and misleading statements regarding its proprietary AI lending model, Model 22, between May 14, 2025, and November 4, 2025. Specifically, the complaints claim that Model 22 frequently overreacted to negative macroeconomic signals, leading to an overstatement of its accuracy and propensity to increase loan approval rates. This allegedly resulted in an overly conservative assessment of credit and macroeconomic conditions, negatively impacting Upstart Holdings' revenue and rendering its full-year 2025 revenue guidance unreliable. The truth reportedly emerged on November 4, 2025, when Upstart Holdings reported disappointing Q3 2025 financial results and negatively revised its FY 2025 revenue guidance, blaming Model 22's 'overreaction' to macroeconomic signals. Following these disclosures, Upstart Holdings' stock price fell significantly. Investors have until June 8, 2026, to apply to be appointed as lead plaintiff in these lawsuits.

Key Actions
100 Rosen Law Firm filed class action lawsuit Upstart Holdings
100 Pomerantz LLP filed lawsuit Upstart Holdings
100 The Schall Law Firm filed class action lawsuit Upstart Holdings
100 Bronstein, Gewirtz & Grossman, LLC filed lawsuit Upstart Holdings
100 Bragar Eagel & Squire filed class action lawsuit Upstart Holdings
95 Faruqi & Faruqi investigated potential claims Upstart Holdings
90 Upstart Holdings blamed Model 22 Model 22
90 DJS Law Group reminded investors of lawsuit Upstart Holdings
89 Upstart Holdings issued financial guidance
87 Upstart Holdings blamed Model 22
70 DJS Law Group reminded investors of lawsuit
70 Bragar Eagel & Squire encouraged investors to contact
70 The Schall Law Firm reminded investors of lawsuit
70 Brandon Walker encouraged investors contact
60 Melissa Fortunato encouraged investors contact
Entities Involved
stock
Upstart Holdings
Upstart Holdings is the defendant in multiple class action lawsuits alleging that its Model 22 AI lending platform made false and misleading statements, leading to investor losses. The company's stock price fell significantly after these disclosures.
Importance 100 Sentiment -70
oth
Model 22
Model 22 is Upstart Holdings' proprietary AI lending model, which is at the center of the lawsuit. Its alleged overreaction to macroeconomic signals and overstated accuracy led to the company's financial misstatements and subsequent stock price decline.
Importance 90 Sentiment -60
priv
Rosen Law Firm
Rosen Law Firm is actively encouraging investors to join the class action lawsuit against Upstart Holdings, seeking compensation for alleged securities fraud.
Importance 80 Sentiment 20
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Pomerantz LLP
Pomerantz LLP has filed a class action lawsuit against Upstart Holdings and its officers, representing investors who suffered damages due to alleged false and misleading statements.
Importance 80 Sentiment 20
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The Schall Law Firm
The Schall Law Firm has filed a class action lawsuit against Upstart Holdings, alleging that the company made false and misleading statements regarding its Model 22 AI.
Importance 80 Sentiment 20
priv
Bronstein, Gewirtz & Grossman, LLC
Bronstein, Gewirtz & Grossman, LLC reminds investors of the class action lawsuit against Upstart Holdings and encourages them to join the case.
Importance 80 Sentiment 20
priv
Bragar Eagel & Squire
Bragar Eagel & Squire has filed a class action lawsuit against Upstart Holdings, alleging false and misleading statements regarding its AI model and financial guidance.
Importance 80 Sentiment 20
priv
Faruqi & Faruqi
Faruqi & Faruqi reminds Upstart investors of the securities class action deadline, indicating their involvement in the legal proceedings.
Importance 70 Sentiment 20
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DJS Law Group
DJS Law Group reminds investors of a class action lawsuit against Upstart Holdings for violations of securities laws, encouraging shareholders to participate.
Importance 70 Sentiment 20
govactor
United States — United States District Court for the Northern District of California
The United States — United States District Court for the Northern District of California is where one of the class action lawsuits against Upstart Holdings has been filed.
Importance 50 Sentiment 0
govactor
United States — United States District Court for the Southern District of New York
United States — United States District Court for the Southern District of New York is where Pomerantz LLP filed its class action lawsuit against Upstart Holdings.
Importance 50 Sentiment 0
per
Philip Kim
Philip Kim, an attorney at Rosen Law Firm, is a contact person for investors interested in joining the class action lawsuit against Upstart Holdings.
Importance 40 Sentiment 10
per
Lawrence Rosen
Lawrence Rosen, founding partner of Rosen Law Firm, is highlighted for his firm's success in securities class actions and is involved in the Upstart Holdings lawsuit.
Importance 40 Sentiment 10
per
Brian Schall
Brian Schall of The Schall Law Firm is encouraging investors who suffered losses in Upstart Holdings to contact his firm regarding the class action lawsuit.
Importance 40 Sentiment 10
per
Peretz Bronstein
Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC, is a contact for investors regarding the Upstart Holdings class action lawsuit.
Importance 40 Sentiment 10
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