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SAN DIEGO, Oct. 23, 2021 (GLOBE NEWSWIRE) -- Robbins Geller Rudman & Dowd LLP announces that purchasers of Katapult Holdings, Inc. f/k/a FinServ Acquisition Corp. (NASDAQ: KPLT; KPLTW) securities between December 18, 2020 and August 10, 2021, both dates inclusive (the “Class Period”) have until this upcoming Tuesday, October 26, 2021 to seek appointment as lead plaintiff in the Katapult class action lawsuit. The Katapult class action lawsuit – McIntosh v. Katapult Holdings, Inc. f/k/a FinServ Acquisition Corp., No. 21-cv-07251 – charges Katapult and certain of its top executives with violations of the Securities Exchange Act of 1934. The Katapult class action lawsuit was commenced on August 27, 2021 and is pending in the Southern District of New York.
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.