NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP is investigating potential claims against Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT). The investigation concerns whether Katapult has violated the federal securities laws and/or engaged in other unlawful business practices.
Katapult, an e-commerce focused financial technology company, provides e-commerce point-of-sale lease-purchase options for nonprime consumers in the United States. On June 9, 2021, Katapult completed its merger with FinServ Acquisition Corp., a special purpose acquisition company.
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.
On August 10, 2021, just 2 months after the merger closed and 2021 guidance was 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 EBITDA 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 e-commerce retail sales outlook, uncertainty assessing consumer spending behavior, and COVID-19. On this news, the Company’s share price declined by $5.47 per share, or approximately 56.22%, from $9.73 per share to close at $4.26 per share on August 10, 2021.
If you purchased or otherwise acquired Katapult securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at investigations@kmllp.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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