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KPLT.US
id: 1236

Katapult Holdings (KPLT) Investor Settlement

$2,500,000
Cash Settlement
S.D. New York
Court
1:21-cv-07251
Case number
06/15/2021
Class period Start
08/09/2021
Class period End
12/19/2024
Claim deadline

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 Type
US Securities Class Action
Case Status
Distribution Started
Alleged Offence
Mismanagement, 
Misleading Statements, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.09
Filing date
08/27/2021
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
12/13/2024
Exclusion deadline
11/22/2024
Objection deadline
11/22/2024
Hearing deadline
11/22/2024
Attorney fee
$902,500
Trades matching type
FIFO
Disbursement date
02/27/2026

Frequently Asked Questions

Who is eligible for this settlement?
All persons and entities who purchased or otherwise acquired Katapult Holdings, Inc. common stock pursuant and/or traceable to the registration statement and prospectus issued in connection with the June 2021 merger between Katapult and FinServ Acquisition Corp., and were damaged thereby.
Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.09 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.36 per share.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.