Katapult Holdings, Inc.

  • Active

Investigation
08/27/2021

Initial Lawsuit
08/27/2021

Lawsuit Progression
05/26/2022

Investigation

  • Continous Holding
    December 18, 2020 to August 10, 2021
  • Proposed Claim
    Securities Violation

Did Katapult mislead investors in connection with its going public merger with FinServ Acquisition and its eCommerce sales & consumer spending?

This post is open for investors to gather facts, and findings and track their exposure to related lawsuits. We invite investors and shareholders to contribute to this investigation for their own benefit, add events to the factual timeline below and vote on events’ pertinence.

A lawsuit was subsequently filed. We will update this post as it unfolds.

Main Event

Disappointed?

08/10/2021

Company Statement

Katapult announces its Q2 2021 financials results, including a net loss of $8.1 million down from $5.1 million of net income in Q2 2020. Adjusted net income comes at $1.5 million, down 70.4% from $5.2 million in the second quarter of 2020.

“Since our Q1 earnings call and continuing to date, many new developments emerged that have an impact to our business. We observed meaningful changes in both e-commerce retail sales forecasts and consumer spending behavior, and in the past few weeks, the onset of new policies from the COVID-19 variants. Given the current macro trends and uncertainty to accurately predict our consumer’s buying behaviors for the remainder of the year, we believe it is best to remove explicit guidance for the remainder of 2021. While the short-term outlook may not be 100% clear, we do continue to believe in our mission, our core business fundamentals, and are extremely pleased with the progress of our strategic investments that will drive long term growth.”

The stock impact compares the closing price immediately preceding the date of the event and the following closing price. The price difference also reflects the overall mix of information.

Stock Impact

Close Previous close Price variation Percentage variation
$4.26 $9.73 $-5.47 -56.22%
See more on Factual Timeline

Initial Lawsuit

First Complaint - 08/27/2021

A Katapult investor filed a securities class action lawsuit on behalf of persons and entities that purchased or otherwise acquired Katapult Holdings, Inc. securities between December 18, 2020, and August 10, 2021, inclusive.

  • Filing Date
    08/27/2021
  • Class Period
    12/18/2020 to 08/10/2021
  • Transgression
    Securities Violation
  • Filing Firms
    Glancy Prongay & Murray LLP
    Law Offices of Howard G. Smith
  • Case Title
    McIntosh v. Katapult Holdings, Inc. et al
  • Docket Number
    1:21-cv-07251
  • Court
    New York Southern District Court
  • Free File
    Complaint

Allegations

According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:

(1) that Katapult was experiencing declining e-commerce retail sales and consumer spending,
(2) that despite Katapult’s assertions that it was clear and compelling value proposition to both consumers and merchants, transforming the way nonprime consumers shop for essential good sand enabling merchant access to this underserved segment, Katapult lacked visibility into its consumers’ future buying behavior; and
(3) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

Defendants

  • Company
    Katapult Holdings, Inc.
  • Chief Executive Officer
    Lee Einbinder
  • Chief Financial Officer
    Howard Kurz
  • Chief Executive Officer
    Orlando Zayas
  • Chief Executive Officer
    Karissa Cupito

Lawsuit progression

  • Docket Number
    1:21-cv-07251
  • Court
    New York Southern District Court

Lead Counsel

05/26/2022

The court issued an order appointing the lead plaintiff and lead counsel.

  • Lead Counsel
    Wolf Haldenstein Adler Freeman & Herz LLP
  • Lead Plaintiff
    Individual
  • Free File
    Order for lead
[stockdio-historical-chart symbol=”KPLT” stockExchange=”NYSENasdaq” width=”500″ height=”330″ motif=”blinds” palette=”humanity” includeVolume=false]

Factual Timeline

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