Katapult Holdings, Inc. (KPLT) Failed to Disclose Declining E-commerce Retail Sales and Consumer Spending
A class action was filed on behalf of all persons and entities that purchased or otherwise acquired Katapult Holdings, Inc. (NASDAQ:KPLT) securities between December 18, 2020 and August 10, 2021, for violations of the Securities Exchange Act of 1934. Katapult claims to be a “next-generation platform for digital and mobile-first commerce focused on the non-prime consumer.”
According to the complaint, FinServe, a special purpose acquisition company, entered into a definitive merger agreement with Katapult to combine companies. FinServe touted Katapult as “[a] leading e-commerce POS, lease purchase platform provider focused on the estimated $50 billion of annual nonprime consumer durable goods e-commerce spend.” On June 9, 2021, the merger was completed. Then, on August 10, 2021, Katapult announced 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 $5.47, or more than 56%, to close at $4.26 per share on August 10, 2021.
If you purchased shares of Katapult Holdings, Inc. (KPLT) securities between December 18, 2020 and August 10, 2021, you have until October 26, 2021, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.