Philadelphia, Pennsylvania--(Newsfile Corp. - October 22, 2021) - Berger Montague is investigating securities fraud allegations against Katapult Holdings, Inc. ("Katapult" or the "Company"), formerly known as FinServ Acquisition Corp. The Firm is investigating these claims on behalf of investors who purchased Katapult securities (NASDAQ: KPLT) between December 18, 2020 and August 10, 2021 (the "Class Period").
If you purchased Katapult securities during the Class Period, would like to discuss Berger Montague's investigation, or have questions concerning your rights or interests, please contact attorneys Andrew Abramowitz at firstname.lastname@example.org or (215) 875-3015, or Michael Dell'Angelo at email@example.com or (215) 875-3080.
Whistleblowers: Anyone with non-public information regarding Katapult is encouraged to confidentially assist Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of recoveries obtained by the SEC. For more information, contact us.
Katapult, based in Plano, Texas, operates a digital application that provides lease-purchase options for non-prime consumers who cannot access traditional financing. Katapult was taken public by FinServ, a special purpose acquisition company, in a transaction completed in June 2021.
According to a recently filed lawsuit, Katapult concealed that it was experiencing declining e-commerce retail sales and consumer spending, and that, despite assertions that the Company was a clear and compelling value proposition, Katapult lacked visibility into consumers' buying behavior.
On August 10, 2021, just two months after Katapult closed the merger and gave its 2021 financial guidance, Katapult reported disappointing Q2 2021 financial results, with gross originations down 17% year-over-year, as well as earnings 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 in assessing consumer spending behavior, and COVID-19.
On this news, the Company's share price fell $5.47 - more than 56% - to close at $4.26 per share on August 10, 2021,
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for over five decades and serves as lead counsel in courts throughout the United States.
Andrew Abramowitz, Senior Counsel
Michael Dell'Angelo, Managing Shareholder
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