SUNL.US

id: 512

Sunlight Financial (SUNL) $3.5M Investor Settlement

Late claims are being considered for compensation, subject to approval.

S.D. New York

Court

1:22-cv-10658

Case number

01/25/2021

Class period Start

09/28/2022

Class period End

11/19/2024

Claim deadline

Sunlight Financial (SUNL) has agreed to settle $3.5M with investors to resolve claims concerning ineffective accounting controls and inadequate risk assessment.

Case details:

On September 28, 2022, Sunlight Financial announced that its full-year 2022 financial outlook was impacted by an installer liquidity event and volatile interest rates, leading the company to withdraw its previously provided metrics.

Further, Sunlight informed that one of its biggest solar installers had financial issues and wasn't able to fulfill its obligations. Sunlight also expected to lose $30-33M in advances to the installer by September 30, 2022.

On this news, $SUNL plunged over 57%.

Based on these events, Sunlight Financial was accused of the following:
Sunlight lacked effective risk assessment for its contractor advance program.
The company had insufficient oversight to detect bad debt.
Sunlight's internal controls over accounting were ineffective, leading to a $30M impairment charge.
Sunlight Financial has now reached an agreement with $SUNL investors to settle claims concerning ineffective accounting controls and inadequate risk assessment.

Case Status

Accepting Late Claims

Alleged Offence

Mismanagement,

Misleading Statements,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Payout per Share

0.14

Filing date

12/16/2022

Plaintiffs

Matthew Millunchick

Attorneys

Glancy Prongay & Murray LLP (New York, NY), The Rosen Law Firm, P.A. (New York, NY)

Defendants

Geoffrey Strong, Matthew Potere, James Crossen, Barry Edinburg, Rodney Yoder, Olivia Wassenaar, Wilson Handler, Christine Hommes, Joseph Romero

Judge

Hon. Alvin K. Hellerstein

Administrator

Strategic Claims Services

Court hearing date

12/10/2024

Exclusion deadline

11/19/2024

Objection deadline

11/19/2024

Hearing deadline

11/19/2024

Attorney fee

$1,015,000

Class wide damages

$164,899,999

Trades matching type

FIFO

+$3,500,000

Cash Settlement Amount

Frequently Asked Questions

When will you be able to apply for the payment?

Do I have to sell securities to be eligible?

How long does the payout process take?

What is 11thestate?