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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against Katapult ...

September 1, 2021 GMT

NEW YORK, Sept. 01, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Katapult Holdings, Inc. (f/k/a FinServ Acquisition Corp.) (“Katapult” or the “Company”) (NASDAQ: KPLT) in the United States District Court for the Southern District of New York on behalf of those who purchased or otherwise acquired Katapult publicly traded securities between December 18, 2020 and August 10, 2021, inclusive (the “Class Period”).

The Complaint alleges that Defendants made false and misleading statements and failed to disclose that: (1) the Company was experiencing declining e-commerce retail sales and consumer spending, (2) despite the Company’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, the Company lacked visibility into its consumers’ future buying behavior; and (3) as a result, defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis.

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On August 10, 2021, the Company 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. The Company 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, the Company’s share price fell more than 56%, damaging investors.

Investors who purchased or otherwise acquired shares of Katapult during the Class Period should contact the Firm prior to the October 26, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.