Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, is investigating whether certain directors and officers of Upstart Holdings, Inc. (“Upstart”) (NASDAQ: UPST) breached their fiduciary duties to Upstart and its shareholders. If you are an Upstart shareholder, you may contact attorney Joe Pettigrew for additional information toll-free at 844-818-6982 or jpettigrew@scott-scott.com.
Scott+Scott is investigating whether members of the Upstart Board of Directors (the “Board”) made, or caused Upstart to make, false and/or misleading statements, as well as whether they failed to disclose material adverse facts, about Upstart’s business, operations, prospects, and financial health. Specifically, Scott+Scott is investigating whether the Board failed to disclose material information, including whether: (1) that Upstart’s AI model could not adequately account for macroeconomic factors such as interest rates that impact the market-clearing price for loans; (2) that, as a result, Upstart was experiencing negative impact on its conversion rate; (3) that, as a result, Upstart was reasonably likely to use its balance sheet to fund loans; and (iv) as a result, statements about Upstart’s business, operations, and prospects lacked a reasonable basis.
On May 9, 2022, after the market closed, Upstart announced its first quarter 2022 financial results in a press release. Upstart reduced 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 cited “rising interest rates and rising consumer delinquencies [as] putting downward pressure on conversion.”
On this news, Upstart’s stock price fell $43.52, or 56%, to close at $33.61 per share on May 10, 2022.
What You Can Do
If you are an Upstart shareholder, you may have legal claims against Upstart’s directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at 844-818-6982 or jpettigrew@scott-scott.com.
About Scott+Scott Attorneys at Law LLP
Scott+Scott has significant experience in prosecuting major securities, antitrust, and consumer rights actions throughout the United States. The firm represents pension funds, foundations, individuals, and other entities worldwide with offices in New York, London, Amsterdam, Connecticut, California, and Ohio.
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Contacts
Joe Pettigrew
Scott+Scott Attorneys at Law LLP
600 W. Broadway, Suite 3300, San Diego, CA 92101
844-818-6982
jpettigrew@scott-scott.com
