SAN FRANCISCO, Aug. 21, 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) Investigation:
The investigation focuses on the accuracy of Katapult’s and others insiders’ statements concerning the company’s financial performance, operations and business prospects leading up to and after its June 9 2021 SPAC merger.
As recently as June 15, 2021, Katapult touted its “unique position” to serve a very large e-commerce market for durable goods purchased by non-prime consumers and its “disruptive technology” that empowers underserved consumers and simplifies the shopping experience to help them secure essential items for their daily lives. The company claimed these factors supported its lofty 2021 financial guidance, projecting exponential growth in gross originations and adjusted EBITDA.
But on Aug. 10, 2021, just 2 months after the merger closed and 2021 guidance were given, 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.
This news sent the price of Katapult Holdings shares crashing lower.
“We’re focused on investors’ losses and whether the 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