The legal scrutiny centers on a period between March 13 and May 7, 2026, when executives repeatedly assured the market that the firm was on track to achieve $1 billion in monthly loan volume by May. Former CEO Vishal Garg and CFO Loveen Advani painted a picture of a company insulated from broader economic volatility, claiming the business could scale regardless of market conditions. These claims disintegrated on May 7, when the company reported that quarterly loan volume would fall nearly 45% short of the promised targets.
Beyond the missed volume projections, the company disclosed that net losses had surged 75% sequentially. The sharp reversal in fortunes led to the ouster of Garg and prompted the law firm Hagens Berman to initiate an investigation into whether leadership knowingly withheld information about a stalling conversion funnel. Investors who suffered losses during this period have until November 20, 2026, to file as lead plaintiffs in the litigation.
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