Plaintiff Firms Race to Seat Lead Plaintiffs in Upstart AI Securities Suit

Overview

• Three plaintiff firms have issued notices seeking investors who bought Upstart stock between May 14, 2025 and November 4, 2025 to move for lead‑plaintiff status before the June 8, 2026 deadline.
• The complaints allege Upstart’s Model 22 AI often overreacted to negative macroeconomic signals, overstated its accuracy, and led to poorer loan decisions that harmed the company’s business and made 2025 revenue guidance unreliable.
• The Schall Law Firm’s filings identify claims under Sections 10(b) and 20(a) of the Securities Exchange Act and SEC Rule 10b‑5, and other firms’ summaries track the same theory of misleading statements about Model 22.
• No class has been certified and investors are not represented by class counsel unless they retain an attorney, with firms offering contingency fee representation for those who want to join or lead the case.
• The next steps to watch are which investor becomes lead plaintiff, whether a court certifies a class, and how rulings on those issues will affect the scope of recoveries for shareholders who claim losses.