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SUNL.US
id: 512

Sunlight Financial (SUNL) Investor Settlement

S.D. New York
Court
1:22-cv-10658
Case number
25 Jan 2021
Class period Start
28 Sept 2022
Class period End
Sunlight Financial reached an agreement with $SUNL investors to settle 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
Tentative Settlement
Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Malpractice
Negligence
Omissions
Suspected Party
Directors
Management
Service Provider
Security Type
Stocks
Trade Direction
Long
Filing date
16 December 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
Trades matching type
FIFO

Frequently Asked Questions

Sunlight Financial Holdings Inc

Sunlight Financial Holdings Inc. operates a business-to-business-to-consumer technology-enabled point-of-sale financing platform in the United States. Its platform is used to provide secured and un...

    Ticker
    SUNL.US
    ISIN
    US86738J1060
    CIK
    1821850
    Sector
    Financial Services
    Industry
    Credit Services
    Country
    USA
    Address
    101 North Tryon Street, Charlotte, NC, United States, 28246