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Katapult Holdings, Inc. Class Action Lawsuit - KPLT

Company Name
Katapult Holdings, Inc.
Stock Symbol
KPLT
Class Period
December 18, 2020 to August 10, 2021
Motion Deadline
October 26, 2021
Court
Southern District of New York
37 days left to seek lead plaintiff status

Case Summary

The Katapult class action lawsuit charges Katapult Holdings, Inc. f/k/a FinServ Acquisition Corp. (NASDAQ: KPLT) and certain of its top executives with violations of the Securities Exchange Act of 1934.  The Katapult class action lawsuit seeks to represent purchasers of Katapult securities between December 18, 2020 and August 10, 2021, inclusive (the “Class Period”).  The Katapult class action lawsuit was commenced on August 27, 2021 in the Southern District of New York and is captioned McIntosh v. Katapult Holdings, Inc., No. 21-cv-07251.

If you wish to serve as lead plaintiff of the Katapult class action lawsuit, please provide your information by clicking here.  You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com.  Lead plaintiff motions for the Katapult class action lawsuit must be filed with the court no later than October 26, 2021.

CASE ALLEGATIONS: FinServ was a blank check company, or special purpose acquisition company (“SPAC”), formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses.  On December 18, 2020, FinServ announced that it had entered into a definitive merger agreement with legacy Katapult.

The Katapult class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) Katapult was experiencing declining e-commerce retail sales and consumer spending, (ii) despite Katapult’s assertions that it delivers a clear and compelling value proposition to both consumers and merchants, transforming the way nonprime consumers shop for essential goods and enabling merchant access to this underserved segment, Katapult lacked visibility into its consumers’ future buying behavior; and (iii) as a result, defendants’ positive statements about Katapult’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

On August 10, 2021, Katapult issued a press release announcing disappointing financial results for the second quarter of 2021 including a net loss of $8.1 million, compared to $5.1 million in net income for the second quarter of 2020.  Katapult further disclosed that it “observed meaningful [negative] changes in both e-commerce retail sales forecasts and consumer spending behavior” and retracted its full year 2021 guidance, claiming it could not “accurately predict our consumer’s buying behaviors for the remainder of the year.”  On this news, Katapult’s share price fell more than 56%, damaging investors.

Robbins Geller Rudman & Dowd LLP has launched a dedicated SPAC Task Force to protect investors in blank check companies and seek redress for corporate malfeasance.  Comprised of experienced litigators, investigators, and forensic accountants, the SPAC Task Force is dedicated to rooting out and prosecuting fraud on behalf of injured SPAC investors.  The rise in blank check financing poses unique risks to investors.  Robbins Geller Rudman & Dowd LLP’s SPAC Task Force represents the vanguard of ensuring integrity, honesty, and justice in this rapidly developing investment arena.

THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Katapult securities during the Class Period to seek appointment as lead plaintiff in the Katapult class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Katapult class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Katapult class action lawsuit.  An investor’s ability to share in any potential future recovery of the Katapult class action lawsuit is not dependent upon serving as lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions.  Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.  The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm.

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