The legal challenge focuses on the period between March 13 and May 7, 2026. Plaintiffs allege that while the company issued standard warnings about potential macroeconomic pressures on loan volume, it failed to disclose that its conversion rates were already in decline and that its stated $1 billion monthly volume target was effectively unreachable. When the firm finally disclosed that the target had been deferred on May 7, share prices dropped 28.5% to $30.52.

Joseph E. Levi, an attorney representing the investors, argues that generic risk disclosures were insufficient given the specific operational problems the company was already navigating. The complaint contends that executives reaffirmed aggressive growth targets despite internal data showing that top-of-funnel traffic was failing to translate into funded loans. The case, which includes allegations against senior executives Vishal Garg and Loveen Advani, seeks to recover losses for shareholders who purchased securities at prices allegedly inflated by these omissions.