Sunlight Financial Holdings Inc. f/k/a Spartan Acquisition Corp II Class Action Lawsuit - SUNL

12 days left to seek lead plaintiff status

Case Summary

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The Sunlight Financial class action lawsuit seeks to represent purchasers or acquirers of Sunlight Financial Holdings Inc. f/k/a Spartan Acquisition Corp II (NYSE: SUNL; SUNL.WS) securities between January 25, 2021 and September 28, 2022, inclusive (the “Class Period”).  Captioned Fung v. Sunlight Financial Holdings Inc., No. 22-cv-10658 (S.D.N.Y.), the Sunlight Financial class action lawsuit charges Sunlight Financial and certain of its top executives with violations of the Securities Exchange Act of 1934.

If you suffered substantial losses and wish to serve as lead plaintiff of the Sunlight Financial class action lawsuit, please provide your information in the form on this page.  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 Sunlight Financial class action lawsuit must be filed with the court no later than February 14, 2023.

CASE ALLEGATIONS: Sunlight Financial claims to be a point-of-sale (“POS”) financing platform that provides residential solar and home improvement contractors the ability to offer POS financing to their customers when purchasing residential solar systems or other home improvements.  Sunlight Financial became a publicly traded company in July 2021 via the business combination of Spartan Acquisition Corp. II, a publicly traded special purpose acquisition company – known as a “SPAC” or blank-check company – with Sunlight Financial LLC.

The Sunlight Financial class action lawsuit alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Sunlight Financial lacked effective underwriting and risk evaluation with respect to its contractor advance program; (ii) Sunlight Financial lacked the oversight and periodic monitoring systems necessary to timely detect bad debt associated with its contractor advance program; (iii) Sunlight Financial lacked effective internal controls over accounting and reporting of non-cash advance receivables; and (iv) as a result, Sunlight Financial would be forced to take a non-cash advance receivables impairment charge exceeding $30 million.

On September 28, 2022, Sunlight Financial disclosed that it would record a “non-cash advance receivables impairment charge of $30 million to $33 million during [Sunlight Financial]’s fiscal quarter ending September 30, 2022.”  Sunlight Financial explained that it “was informed of certain actions taken by one of its installer partners to address liquidity issues faced by the installer” which “would likely result in an inability of [Sunlight Financial] to collect on advances outstanding to such installer.”  Sunlight Financial also issued a press release withdrawing its full-year 2022 outlook.  On this news, the price of Sunlight Financial shares declined by more than 57%, damaging investors.

Robbins Geller 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’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 or acquired Sunlight Financial securities during the Class Period to seek appointment as lead plaintiff in the Sunlight Financial 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 Sunlight Financial class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Sunlight Financial class action lawsuit.  An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Sunlight Financial class action lawsuit. 

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases.  The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering nearly $2 billion for investors in 2021 – more than triple the amount recovered by any other plaintiffs’ firm.  With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig.

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