NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against Katapult Holdings, Inc. (“Katapult” or the “Company”) (NASDAQ: KPLT) on behalf of Katapult stockholders. Our investigation concerns whether Katapult has violated the federal securities laws and/or engaged in other unlawful business practices.
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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.
On this news, the Company’s stock fell $5.47, or 56%, to close at $4.26 per share on August 10, 2021.
If you purchased or otherwise acquired Katapult shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker, Melissa Fortunato, or Marion Passmore by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
