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SUNL.US
id: 512

Sunlight Financial (SUNL) $3.5M Investor Settlement

$3,500,000
Cash Settlement
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 Type
US Securities Class Action
Case Status
Distribution Started
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

Frequently Asked Questions

Who is eligible for this settlement?
All persons and entities who: (a) purchased the publicly traded common stock of Sunlight Financial Holdings, Inc. between January 25, 2021 and September 28, 2022, inclusive; and/or (b) beneficially owned and/or held the common stock of Spartan Acquisition Corp. II as of June 1, 2021 and were eligible to vote at Spartan’s July 8, 2021 special meeting.
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 $0.14 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.56 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.