Upstart Holdings, Inc. Investors: Class Action Lawsuit Filed to Recover Investors Losses; Portnoy Law Firm
News provided byPortnoy Law
Jun 27, 2022, 10:19 AM ET
Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, June 27, 2022 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises Upstart Holdings, Inc. (NASDAQ: UPST) investors that a class action filed on behalf of investors that purchased Upstart Holdings shares and lost money are encouraged to contact the firm to discuss their legal rights.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: firstname.lastname@example.org, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
Upstart Holdings, Inc. (UPST) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants failed to disclose to investors that Upstart's AI model could not adequately account for macroeconomic factors such as interest rates that impact the market-clearing price for loans. In addition, the Company was experiencing negative impact on its conversion rate and reasonably likely to use its balance sheet to fund loans.
On May 9, 2022, Upstart announced its first quarter 2022 financial results, reducing 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 indicated that the "balance of loans, notes, and residuals at the end of the quarter was ... up to $604 million from $261 million in Q4," citing "rising interest rates and rising consumer delinquencies [as] putting downward pressure on conversion." On this news, the Company's stock price fell $43.52, or 56%, to close at $33.61 per share on May 10, 2022.
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The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
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