Kirby McInerney LLP Announces Filing of Securities Class Action on Behalf of Katapult Holdings, Inc. f / k / a FinServ Acquisition Corp. (KPLT) Investors
NEW YORK, September 03, 2021– (COMMERCIAL THREAD) – The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of those who acquired Katapult Holdings, Inc. f / k / a FinServ Acquisition Corp. (“Katapult” or the “Company”) (NASDAQ: KPLT) from December 18, 2020 to August 10, 2021 inclusive (the “Class Period”). Investors have until October 26, 2021 to ask the court to be named lead plaintiffs in the lawsuit.
Katapult claims to be a ‘next-generation platform for non-privileged consumer-centric digital and mobile commerce’, providing lease-to-purchase, point-of-sale options for non-privileged consumers who cannot access finance products. traditional.
On June 9, 2021, Katapult became a public company through a business combination with FinServ Acquisition Corp., a blank check company incorporated for the purpose of effecting a merger, a capital stock exchange, an asset acquisition, a share purchase, reorganization or similar business combination with one or more businesses.
As late as June 15, 2021, Katapult touted its “unique position” to serve a very large e-commerce marketplace for durable goods purchased by unprivileged consumers and its “disruptive technology” that empowers underserved consumers and simplifies the shopping experience to help them secure the items essential to their daily lives. The company said these factors supported its lofty financial forecast for 2021, forecasting exponential growth in gross start-ups and adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”).
On August 10, 2021, barely 2 months after the merger closed and the forecast for 2021 was released, Katapult reported disappointing second quarter 2021 financial results, reporting gross creations of just $ 64.4 million, down 17% year-over-year, along with adjusted EBITDA of $ 3.9 million, down 64.8% year-on-year. In addition, the company has withdrawn its forecast for 2021 entirely, blaming the bleak outlook on changes in the outlook for e-commerce retail sales, uncertainty assessing consumer spending behavior and COVID-19. Following this news, the Company’s share price fell by $ 5.47 per share, or approximately 56.22%, from $ 9.73 per share to close at $ 4.26 per share on the 10th. August 2021.
The lawsuit alleges throughout the Class Period that the Defendants made materially false and / or misleading statements, as well as that they failed to disclose material adverse facts regarding the business, operations and prospects of the society. Specifically, the defendants failed to disclose to investors: (1) that Katapult was experiencing a decline in e-commerce retail sales and consumer spending; (2) that despite Katapult’s claims that this was a clear and compelling value proposition for consumers and merchants, transforming the way unprivileged consumers buy essentials and enabling merchants to access in this underserved segment, Katapult lacked visibility into the future purchasing behavior of its consumers; and (3) as a result, the Defendants’ statements regarding its business, operations and prospects were materially false and misleading, and / or lacked reasonable basis at all relevant times.
If you have purchased or acquired Katapult securities, have any information or would like to know more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at [email protected], or by completing this Contact form, to discuss your rights or interests in these matters at no cost to you.
Kirby McInerney LLP is a New York law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm is available on the Kirby McInerney LLP website: http://www.kmllp.com.
This press release may be considered an attorney’s advertisement in certain jurisdictions under applicable law and ethical rules.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20210903005447/en/