KPLT.US
id: 1236
Katapult Holdings (KPLT) Investor Settlement
S.D. New York
Court1:21-cv-07251
Case number15 Jun 2021
Class period Start09 Aug 2021
Class period End19 Dec 2024
Claim deadlineKatapult 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
Accepting Claims
Alleged Offence
Mismanagement,
Misleading Statements,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.09
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
Administrator
JND Legal Administration
Settlement agreement date
2024-07-03
Court hearing date
13 December 2024
Exclusion deadline
22 November 2024
Objection deadline
22 November 2024
Hearing deadline
22 November 2024
Attorney fee
$902,500
Trades matching type
FIFO
+$2,500,000
Cash Settlement Amount