The information contained on this website is only a summary of the information presented in more detail in the Notice of Pendency and Proposed Settlement of Class Action. Because this website is just a summary, you should review the Notice for additional details.
Summary of the Action and Settlement
This website relates to a proposed Settlement of a class action lawsuit ("the Action") pending against Katapult Holdings, Inc. (“Katapult”), Orlando Zayas, Karissa Cupito, Derek Medlin, Lee Einbinder, and Howard Kurz (“Defendants”). Lead Plaintiff Matis Nayman and additional plaintiff, Felipe de Castro Luna (collectively, the “Plaintiffs” for the purposes of the Settlement) allege that Defendants violated the federal securities laws by making materially false and misleading statements and omissions of information regarding Katapult’s financial prospects, causing the price of Katapult’s securities to be artificially inflated and resulting in damage to the Settlement Class Members after the true facts were revealed. Plaintiffs also allege that FinServ Acquisition Corp. (“FinServ”) failed to disclose critical information in its proxy statement in connection with the business combination between FinServ and Katapult.
Plaintiffs, on behalf of the Settlement Class, have reached a proposed Settlement of the Action for a total of $2,500,000 in total settlement value—with $1,775,000 paid in cash and the remainder paid in either shares of freely-tradeable Katapult common stock or additional cash to settle all of the Plaintiffs’ and the Settlement Class’s known and unknown claims against Defendants. The Court will consider the fairness, reasonableness, and adequacy of the proposed Settlement and related matters in the Settlement Hearing on December 13, 2024.
If you are a member of the Settlement Class, you are subject to the Settlement unless you timely request to be excluded. The Settlement Class consists of all persons and entities that:
(a) purchased or otherwise acquired Katapult securities between June 15, 2021 and August 9, 2021, both dates inclusive, and/or (b) held FinServ common stock as of May 11, 2021 and were eligible to vote at FinServ’s June 7, 2021 special meeting.
Excluded from the Settlement Class are: (i) Katapult, Orlando Zayas, Karissa Cupito, Derek Medlin, Lee Einbinder, Howard Kurz, Robert Matza, Diane B. Glossman, Aris Kekedjian, and FinServ Holdings LLC (“FinServ Holdings”); (ii) any person who was an officer or director of FinServ or FinServ Holdings between November 5, 2019 and June 9, 2021; (iii) any person who was an officer or director of Katapult between May 18, 2021 and August 10, 2021; (iv) the immediate family members, meaning the parents, spouse, siblings, or children, of any of the foregoing persons; (v) any trusts, estates, entities, or accounts that held FinServ or Katapult shares for the benefit of the foregoing persons or entities; (vi) the legal representatives, heirs, successors-in-interest, successors, transferees, and assigns of the foregoing persons or entities. Also excluded from the Settlement Class will be any Person who timely and validly seeks exclusion from the Settlement Class.
Please read the Notice to fully understand your rights and options. Copies of the Notice and Claim Form can be found in the Important Documents and File a Claim pages on this website.
Payments to eligible claimants will be made only if the Court approves the Settlement and a Plan of Allocation, only after any appeals are resolved, and after the completion of all claims processing. Please be patient, as this process will take some time to complete.
| YOUR LEGAL RIGHTS AND OPTIONS IN THE SETTLEMENT: |
| DO NOTHING |
Get no payment. Remain a Settlement Class Member. Give up your rights. |
| REMAIN A MEMBER OF THE CLASS AND SUBMIT A CLAIM FORM POSTMARKED NO LATER THAN DECEMBER 19, 2024 |
This is the only way to be potentially eligible to receive a payment. If you wish to obtain a payment as a member of the Settlement Class, you will need to file a claim form (the “Claim Form” or “Proof of Claim Form”), which is included with the Notice, postmarked no later than December 19, 2024. |
| EXCLUDE YOURSELF FROM THE CLASS (OPT OUT) BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION SO THAT IT IS RECEIVED NO LATER THAN NOVEMBER 22, 2024 |
Receive no payment pursuant to this Settlement. This is the only option that allows you to ever potentially be part of any other lawsuit against any of the Defendants or the other Released Defendants’ Persons concerning the Released Plaintiffs’ Claims. Should you elect to exclude yourself from the Settlement Class, you should understand that Defendants and the other Released Defendants’ Persons will have the right to assert any and all defenses they may have to any claims that you may seek to assert, including, without limitation, the defense that any such claims are untimely under applicable statutes of limitations and statutes of repose. |
| OBJECT TO THE SETTLEMENT SO THAT IT IS RECEIVED NO LATER THAN NOVEMBER 22, 2024 |
Write to the Court about your view on the Settlement, the Plan of Allocation, or the request for attorneys’ fees and litigation expenses, or why you don’t think the Settlement, the Plan of Allocation, and/or the request for attorneys’ fees and litigation expenses is fair to the Settlement Class.
If you do not exclude yourself from the Settlement Class, you may object to the Settlement, the Plan of Allocation, or the request for attorneys’ fees and litigation expenses. You must still submit a Claim Form in order to be potentially eligible to receive any money from the Settlement Fund. |
| GO TO THE HEARING ON DECEMBER 13, 2024, AT 10:00 a.m., AND FILE A NOTICE OF INTENTION TO APPEAR SO THAT IT IS RECEIVED NO LATER THAN NOVEMBER 22, 2024 |
Ask to speak in Court about the fairness of the Settlement, the proposed Plan of Allocation, or the request for attorneys’ fees and litigation expenses. |
How do I obtain more information?
Detailed information about the Settlement is contained in the Notice and the documents on the Important Documents page of this website. Additional information can also be obtained by contacting the Claims Administrator by calling toll-free 844-552-0057, emailing info@Katapult-FinServSecuritiesLitigation.com, or mailing a letter to:
Katapult Securities Litigation
c/o JND Legal Administration
PO Box 91340
Seattle, WA 98111
Inquiries should NOT be directed to the Court or the Clerk of the Court.
© JND Legal Administration. All rights reserved.
