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KPLT.US
id: 1236

Katapult Holdings (KPLT) Investor Settlement

S.D. New York
Court
1:21-cv-07251
Case number
15 Jun 2021
Class period Start
09 Aug 2021
Class period End
Katapult Holdings has reached an agreement with $KPLT investors to settle claims of misleading about sales prospects and consumer behavior.

Outline

Back in 2020, after merging with FinServ, Katapult was accused of concealing declining sales. Despite the claims of growth opportunities, a month after the merger, they reported an $8.1 million net loss. Following this, $KPLT significantly fell, and Katapult faced a lawsuit from investors.

Timeline
  • On December 18, 2020: FinServ and Katapult announced a merger, stating it would provide Katapult with growth opportunities.
  • On June 9, 2021: Katapult and FinServ completed the merger.
  • On August 10, 2021: Katapult revealed they lost $8.1 million for Q2 2021.
  • On August 10, 2021: After this news, $KPLT fell more than 56%.
  • On August 27, 2020: Shareholders sued Katapult, accusing the company of hiding declining online sales and being unable to predict future customer buying habits.
Background

On December 18, 2020, FinServ and Katapult also stated that the merger would provide increased growth opportunities.

Despite Katapult's claims of expanded market reach and strengthened financial position, they reported a net loss of $8.1M for Q2 2021, one month after the merger.

The company issued this to a drop in e-commerce sales and consumer spending. They also withdrew their 2021 predictions because of uncertainty about consumer behavior.

After this news, $KPLT fell more than 56%.

In 2020, Katapult was sued by shareholders for misleading them about declining e-commerce sales and uncertain future consumer behavior.

What can investors expect now?

Katapult Holdings has reached an agreement with $KPLT investors to settle claims of misleading about sales prospects and consumer behavior.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Tentative Settlement
Alleged Offence
Mismanagement
Misleading Statements
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Filing date
27 August 2021
Plaintiffs
Gina McIntosh
Attorneys
The Schall Law Firm (Los Angeles, CA), Wolf Haldenstein Adler Freeman & Herz LLP (New York, NY)
Defendants
Lee Einbinder, Howard Kurz, Orlando Zayas, Karissa Cupito, Derek Medlin
Judge
Arun Subramanian
Trades matching type
FIFO

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