SUNL.US
id: 512
Sunlight Financial (SUNL) $3.5M Investor Settlement
S.D. New York
Court1:22-cv-10658
Case number25 Jan 2021
Class period Start28 Sept 2022
Class period End19 Nov 2024
Claim deadlineSunlight 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 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
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
Administrator
Strategic Claims Services
Court hearing date
10 December 2024
Exclusion deadline
19 November 2024
Objection deadline
19 November 2024
Hearing deadline
19 November 2024
Attorney fee
$1,015,000
Class wide damages
$164,899,999
Trades matching type
FIFO
+$3,500,000
Cash Settlement Amount