NEW YORK--(BUSINESS WIRE)--Jun 8, 2026--
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Upstart Holdings, Inc. (“Upstart” or the “Company”) (NASDAQ: UPST) and reminds investors of the June 8, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
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Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Model 22 frequently overreacted to negative macroeconomic signals in performing its risk-separation processes; (2) accordingly, Model 22’s overall accuracy and propensity to increase loan approval rates was overstated; (3) Model 22’s overly conservative assessment of credit and macroeconomic conditions was having a significant negative impact on Upstart’s revenue results, rendering the Company’s previously issued FY 2025 revenue guidance unreliable and/or unrealistic; and (4) as a result, Defendants’ public statements were materially false and misleading at all relevant times.
The truth began to emerge on November 4, 2025, when Upstart issued a press release reporting its financial results for the third quarter (“Q3”) of 2025. Upstart reported, inter alia, Q3 2025 revenue of $277 million, missing its previously issued Q3 2025 revenue guidance of approximately $280 million, as well as consensus estimates by $2.62 million. Upstart also reported that it expected to generate revenue of only $288 million in the fourth quarter (“Q4”) of 2025, significantly below consensus estimates of $303.7 million. Further, Upstart negatively revised its FY 2025 revenue guidance to approximately $1.035 billion, versus the $1.06 billion consensus estimate and its prior guidance of approximately $1.055 billion, as well as its expected FY 2025 revenue from fees, which it reduced to approximately $946 million from its prior outlook of approximately $990 million.
The same day, during a related earnings call, Defendants blamed Upstart’s disappointing results on Model 22, which they revealed had “overreact[ed]” to macroeconomic signals in the quarter, reducing borrower approvals and conversion rates. Defendants also acknowledged that they had “knowingly” calibrated their AI model to be “more conservative on the credit side in earlier parts of the quarter”, and that the negative impacts of Model 22’s “overresponsive[ness]” to macroeconomic signals in the quarter would continue to negatively impact revenues in Q4 2025, resulting in Upstart’s negatively revised FY 2025 financial guidance.
Following these disclosures, Upstart’s stock price fell $4.49 per share, or 9.71%, to close at $41.75 per share on November 5, 2025.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Upstart’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Upstart class action, go to www.faruqilaw.com/UPST or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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CLASS ACTION DEADLINE TONIGHT: Faruqi & Faruqi, LLP Highlights Class Action Against Upstart Holdings (UPST) and Upcoming Lead Plaintiff Deadline of June 8, 2026
LOS ANGELES (AP) — A federal arson trial began Monday for the man accused of sparking last year's deadly Palisades Fire as the area struggles to rebuild and the aftermath reverberates through the Los Angeles mayor's race.
Jonathan Rinderknecht, 29, appeared in court for jury selection wearing a white shirt and blue tie, having pled not guilty to starting what became one of the most destructive wildfires in California history. Prosecutors say Rinderknecht started a fire on Jan. 1, 2025, and it burned undetected deep in root systems before flaring back up on Jan. 7.
The Palisades Fire ultimately killed 12 people and destroyed thousands of homes as it incinerated hillside neighborhoods in Pacific Palisades and the city of Malibu. Rinderknecht faces at least five years in prison if convicted of charges that also include malicious destruction by means of a fire.
Lead defense attorney Steve Haney has said Rinderknecht is being made as a scapegoat for the Los Angeles Fire Department’s failure to fully extinguish the Jan. 1 blaze. Jury selection is expected to last several days before opening statements begin midweek. The trial is likely to take about two weeks.
News of the trial drew mixed reactions from residents of the Pacific Palisades, who have spent the last year and a half tussling with insurance claims and red tape for building permits as they try to regain normalcy in their lives.
“It drums up all of the emotions over this past year and makes me think about all of the suffering and chaos of all of our neighbors and friends’ lives,” said Meghan Wald, whose home was among the few left standing in her block.
Palisades streets are now crowded with construction vehicles and workers, and charred trees have recovered their luscious green. But vacant lots abound, filled with weeds and wildflowers and the skeletal frames of homes. Of the more than 450 construction projects, only 17 homes have been certified for occupancy.
Wald and her family now live in nearby Brentwood, but she visits weekly to support the handful of businesses that have reopened, including her hair salon, her usual CVS pharmacy and the Palisades Garden Cafe, where her kids used to grab snacks after school.
“It’s great to see the shops that we know and love coming back,” Wald said. “It’s also hard to imagine what it’s going to be like. It will never be the same.”
The fire has been a central theme in incumbent Mayor Karen Bass 's reelection bid as she defends the city's recovery process. Bass was in Ghana as part of a presidential delegation when the flames ignited. One of her challengers, reality TV personality Spencer Pratt, lost his home in the blaze and has made what he calls municipal ineptitude a central campaign message. It's not yet clear if Pratt won enough votes in the primary to face Bass in November's runoff election.
Judge Anne Hwang has ruled that the defense can't introduce evidence or arguments about alleged negligence by the fire department, saying it was irrelevant and could confuse the jury.
Defense attorneys had planned to include testimony from a firefighter that the earlier fire was visibly smoldering when first responders left the scene. That was gathered as part of a lawsuit filed by fire victims against the city.
Haney said he also plans to argue that the government lacks solid evidence or witness testimony linking Rinderknecht to the first fire, and that first responders heard fireworks in the vicinity of where the blaze started.
Prosecutors say geolocation data from Rinderknecht's phone shows that he was in the area of the fire as it rapidly grew, and investigators later seized a Bic barbecue lighter from his car that he admitted to having with him on the trail. They will claim he was upset about a failed relationship as well as thwarted plans for New Year's Eve, and that he ranted to his Uber passengers that evening about being angry at the world, according to an April 29 pretrial memo filed by the U.S. attorney’s office.
Lena Loh, who opened a skin care clinic in the Palisades three months before the fire, said Rinderknecht’s prosecution gives her no sense of relief. She has been struggling to reopen and is looking to leave because she can't sustain the business financially anymore.
“I don’t necessarily think putting him on trial is gonna fix anything,” she said. “This is a city issue. The city needed to manage that small speck of fire better.”
A chimney stands on a lot covered with weeds and wildflowers in front of a home under construction more than a year after the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)
An aerial view shows homes under construction amid empty lots more than a year after the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)
An aerial view shows the cleared site of a mobile home park more than a year after the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)
Meghan Wald poses for a photo in her car in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)
D. Berryman walks her dog, Tiny Dancer, past a fire-damaged building more than a year after the Palisades Fire in the Pacific Palisades neighborhood of Los Angeles, Thursday, June 4, 2026. (AP Photo/Jae C. Hong)
