Settled
Elon Musk & Tesla, Inc. Directors
Elon Musk and other directors have filed a settlement with the court to give back $735M in compensation to Tesla, Inc.
Initial Lawsuit
An Upstart shareholder filed a securities class action on behalf of persons and entities that purchased or otherwise acquired Upstart securities between November 9, 2021 and May 9, 2022, inclusive.
- Filing Date
05/13/2022 - Class Period
11/09/2021 to 05/09/2022 - Transgression
Securities Violation - Filing Firms
Glancy Prongay & Murray LLP - Case Title
Ward v. Upstart, Inc. et al - Docket Number
5:22-cv-02856 - Court
California Northern District Court - Free File
Complaint
Allegations
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:
(1) that Upstart’s artificial intelligence (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, the company was reasonably likely to use its balance sheet to fund loans; and
(4) that, as a result of the foregoing, defendants’ positive statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.
Defendants
- Company
Upstart Holdings, Inc. - Chief Executive Officer
Dave Girouard - Chief Financial Officer
Sanjay Datta