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SAN FRANCISCO, Oct. 16, 2021 (GLOBE NEWSWIRE) -- Hagens Berman urges Katapult Holdings, Inc. (NASDAQ: KPLT) investors and FinServe Acquisition Corp. (NASDAQ: FSRV) investors with significant losses to submit your losses now.
Katapult Holdings, Inc. (KPLT/FSRV) Securities Fraud Class Action:
The complaint alleges that leading up to and after Katapult’s SPAC merger with FinServe, Defendants misrepresented and concealed that (1) Katapult was experiencing declining e-commerce retail sales and consumer spending, and (2) despite Defendants’ assertions that the Company was a clear and compelling value proposition to both consumers and merchants, Katapult lacked visibility into consumers’ buying behavior.
The truth emerged on Aug. 10, 2021, just two months after Katapult closed the merger and gave its 2021 financial guidance. That day, Katapult reported disappointing Q2 2021 financial results, reporting gross originations of only $64.4 million, down 17% year-over-year, as well as adjusted EBITA of $3.9 million, down 64.8% year-over-year. In addition, the Company withdrew its 2021 guidance entirely, blaming the dismal outlook on changes in both e-commerce retail sales outlook, uncertainty assessing consumer spending behavior, and COVID-19.
On this news, the Company's share price fell $5.47, or more than 56%, to close at $4.26 per share on August 10, 2021, on unusually heavy trading volume.
The next day, analyst Loop Capital slashed its Katapult share price target, explaining that management’s Q2 2021 explanations for the slowdown were “inconsistent with what we have heard from other industry players,” and said “Katapult management is now firmly entrenched in the proverbial ‘penalty box,’” and “the company is a ‘show me story’ unlikely to receive the benefit of the doubt from many investors.”
“We’re focused on investors’ losses and proving Katapult misrepresented its growth potential before and after the SPAC merger,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Katapult Holdings or FinServe and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Katapult Holdings or FinServe should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email KPLT@hbsslaw.com.
About Hagens Berman
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Reed Kathrein, 844-916-0895