The purpose of the Notice is to inform you about: (a) this Action, (b) the terms of the proposed Settlement, and (c) your rights in connection with a hearing to be held before the United States District Court, Southern District of New York (the “Court”), on December 13, 2024, at 10:00a.m., to consider the fairness, reasonableness, and adequacy of the Settlement and related matters. The Notice also describes the steps to be taken by those who wish to be excluded from the Settlement Class and, for those who remain Settlement Class Members, the steps necessary to seek to be potentially eligible to share in the distribution of the Settlement Fund in the event the Settlement is approved by the Court.

A class action is a type of lawsuit in which the claims of a number of individuals are resolved together, thus providing the class members with both consistency and efficiency.  In a class action lawsuit, the Court selects one or more people, known as class representatives, to sue on behalf of all people with similar claims, commonly known as the class or the class members.  (For more information on excluding yourself from the Settlement Class, please read the section on this page titled “What If I Do Not Want To Be A Part Of The Settlement?  How Do I Exclude Myself?”) 

The Court in charge of this case is the United States District Court for the Southern District of New York, and the case is known as McIntosh v. Katapult Holdings, Inc., et al., No. 1:21-cv-07251.  The judge presiding over this case is the Honorable Katharine H. Parker, United States District Judge.  The people who are suing are called the Plaintiffs, and those who are being sued are called Defendants.  In this case, the Defendants are Defendants Katapult Holdings Inc., (“Katapult,” or the “Company”) f/k/a FinServ Acquisition Corp. (“FinServ”), Orlando Zayas, Karissa (Long) Cupito, Derek Medlin, Lee Einbinder and Howard Kurz.

The Notice explains the lawsuit, the Settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.  The purpose of the Notice is to inform you of this case, that it is a class action, how you might be affected, and how to exclude yourself from the Settlement if you wish to do so.  It also is being sent to inform you of the terms of the proposed Settlement, and of a hearing to be held by the Court to consider the fairness, reasonableness, and adequacy of the proposed Settlement, the proposed Plan of Allocation, and the application by Lead Counsel for attorneys’ fees and litigation expenses (the “Settlement Hearing”).

The Settlement Hearing will be held on December 13, 2024, at 10:00a.m., before the Honorable Katharine H. Parker, at the United States District Court, Southern District of New York, Courtroom 15A, 500 Pearl Street, New York, NY 10007, or remotely per details that will be made publicly available on this website in advance of the Settlement Hearing, for the following purposes:

1. to determine whether the proposed Settlement on the terms and conditions provided for in the Stipulation is fair, reasonable, and adequate and should be approved by the Court;
2. to determine whether the New York Judgment as provided for under the Stipulation and Agreement of Settlement, Compromise and Release dated July 3, 2024 (the “Stipulation”) should be entered;
3. to determine whether the proposed Plan of Allocation for the net proceeds of the Settlement is fair and reasonable and should be approved by the Court;
4. to determine whether the application by Plaintiffs’ Lead Counsel for an award of attorneys’ fees and litigation expenses should be approved; and
5. to rule upon such other matters as the Court may deem appropriate.

The Notice does not express any opinion by the Court concerning the merits of any claim in the Action, and the Court still has to decide whether to approve the Settlement.  If the Court approves the Settlement, payments to Authorized Claimants will be made after any appeals are resolved, and after the completion of all claims processing.  This process takes time.  Please be patient.

This Action arises under Sections 10(b), 14(a), and 20(a) of the Securities Exchange Act of 1934, and alleges that during the Settlement Class Period, Defendants Katapult, Orlando Zayas, Karissa (Long) Cupito, Derek Medlin, Lee Einbinder and Howard Kurz made materially false and misleading statements about Katapult’s financial prospects.   

Plaintiffs allege that the misrepresentations or omissions of this information artificially inflated the price of Katapult’s securities (common stock and warrants) and that, when the true facts were revealed, the artificial inflation was removed from the price of Katapult’s securities, causing the price to drop and damage to Settlement Class Members.

In addition, Plaintiffs allege that the Proxy that FinServ filed on May 18, 2021 in connection with the business combination between FinServ and Katapult failed to disclose critical information about Katapult’s “waterfall” arrangement with prime lenders, including that prime lenders could decide to extend credit to customers with lower credit ratings that Katapult had projected would be in its customer pool, restricting the flow of the waterfall of customers to Katapult, and that the waterfall was Katapult’s only way to grow its customer base.  

On August 21, 2021, plaintiff Gina McIntosh filed the initial complaint in this action.  ECF No. 1.  On May 26, 2022, the Court appointed Matis Nayman as Lead Plaintiff, and approved his selection of Wolf Haldenstein Adler Freeman & Herz LLP (“Wolf Haldenstein”) as Plaintiffs’ Lead Counsel.  ECF No. 40. Following Plaintiffs’ Lead Counsel’s appointment, Plaintiffs’ Lead Counsel conducted a comprehensive investigation into Defendants’ allegedly wrongful acts, which included, among other things: (1) reviewing and analyzing (a) FinServ’s and Katapult’s filings with the U.S. Securities and Exchange Commission (“SEC”), (b) public reports, press releases, blog posts, and news articles concerning FinServ and Katapult, (c) FinServ’s and Katapult’s investor call transcripts; and (2) retaining and working with a private investigator who conducted an investigation that involved, inter alia, contacting former Katapult employees and other sources of relevant information.  Plaintiffs’ Lead Counsel also consulted with a damages and loss causation expert.  On November 10, 2022, Lead Plaintiffs filed and served the 71-page operative Second Amended Complaint based on information from the foregoing investigation.  ECF No. 59.

On January 9, 2023, Defendants filed a motion to dismiss, and, in the alternative, a motion to strike the Second Amended Complaint.  ECF Nos. 65–70.  Lead Plaintiffs filed their oppositions to each of those motions on March 6, 2023, withdrawing their claims against defendant Medlin.  ECF Nos. 77, 78.  On April 11, 2023, Defendants filed their replies.  ECF Nos. 79 and 80.  On August 8, 2023, United States District Judge J. Paul Oetken of the United States District Court for the Southern District of New York denied Defendants’ motion to strike and granted in part and denied in part Defendants’ motion to dismiss. In that decision, the Court dismissed Plaintiffs’ Section 10(b) and Rule 10b-5 claim, the 20(a) claim based thereon, as well as defendants Cupito and Medlin.

On December 18, 2023, Plaintiffs’ Lead Counsel and Defendants’ Counsel participated in a full-day mediation session with Ms. Michelle Yoshida.  In advance of that session, the Parties exchanged, and provided to Ms. Yoshida, detailed mediation statements and exhibits, which addressed the issues of both liability and damages.  

The mediation was conducted on the same day as, and in coordination with, the mediation of a case in a related action, In re FinServ Acquisition Corp. SPAC Litigation, No. 2022-0755-PAF (“Delaware Action”), pending in Delaware Chancery Court.  

The session ended without any final agreement being reached.  

Thereafter, Ms. Yoshida conducted further discussions with the Parties, which culminated in Ms. Yoshida making a mediator’s recommendation to resolve this New York Action for total settlement consideration consisting of a $1,775,000 cash component and a $725,000 additional component comprised of Katapult common stock and/or cash.  

The Parties subsequently accepted Ms. Yoshida’s recommendation. The agreement in principle to settle the Action that was memorialized in a term sheet (the “Term Sheet”), which was fully executed as of May 20, 2024, following significant additional negotiation. The Term Sheet sets forth, inter alia, Lead Plaintiffs’ agreement to settle and release all claims asserted against Defendants in return for $1,775,000 of the cash component and $725,000 of the additional component, subject to certain terms and conditions and the execution of a customary “long form” stipulation and agreement of settlement.  Following extensive negotiations, on July 3, 2024, the Parties executed the Stipulation.

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; (ii) any person who was an officer or director of FinServ Holdings or FinServ 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; and (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.  Anyone with questions as to whether or not they are excluded from the Settlement Class may call the Claims Administrator toll-free at 844-552-0057. (See the section on this page titled “What If I Do Not Want To Be A Part Of The Settlement?  How Do I Exclude Myself?”)

RECEIPT OF THE NOTICE DOES NOT NECESSARILY MEAN THAT YOU ARE A SETTLEMENT CLASS MEMBER OR THAT YOU ARE ENTITLED TO RECEIVE PROCEEDS FROM THE SETTLEMENT.  IF YOU WISH TO BE POTENTIALLY ELIGIBLE TO RECEIVE A DISTRIBUTION OF THE SETTLEMENT PROCEEDS, YOU MUST COMPLETE, SIGN AND SUBMIT THE ENCLOSED CLAIM FORM POSTMARKED NO LATER THAN DECEMBER 19, 2024.

Plaintiffs and Plaintiffs’ Lead Counsel believe that the claims asserted against Defendants have merit.  Plaintiffs and Plaintiffs’ Lead Counsel recognize, however, the expense and length of continued proceedings necessary to pursue their claims against Defendants through trial and appeals, as well as the difficulties in establishing liability and damages.  Plaintiffs and Plaintiffs’ Lead Counsel have considered the amount of the Settlement, as well as the uncertain outcome and risk in complex lawsuits like this one.  Such risks include, among others, the risk that Plaintiffs would be unsuccessful in proving that Defendants’ alleged misstatements were materially false and misleading, made with scienter (that is, the requisite state of mind), or caused compensable damages to the Settlement Class.  

In light of the amount of the Settlement and the immediacy of recovery to the Settlement Class, Plaintiffs and Plaintiffs’ Lead Counsel believe that the proposed Settlement is fair, reasonable and adequate, and in the best interests of the Settlement Class.  Plaintiffs and Plaintiffs’ Lead Counsel believe that the Settlement provides a substantial benefit now, namely a value of $1.775 million in cash and $725,000 in cash or stock (less the various deductions described in the Notice), as compared to the risk that the claims would produce a smaller recovery, or no recovery, after summary judgment, trial and appeals, possibly years in the future as well as the risks associated with Katapult’s financial position.

Defendants have denied and continue to deny each and all of the claims alleged by Plaintiffs in the Action.  Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Action.  Defendants also have denied and continue to deny, among other things, the allegations that Plaintiffs or the Settlement Class have suffered any damage, and that Plaintiffs or the Settlement Class were harmed by the conduct alleged in the Action.

If there were no Settlement and Plaintiffs failed to establish any essential legal or factual element of the alleged claims, neither Plaintiffs nor the Settlement Class would recover anything from Defendants.  Additionally, if Defendants were successful in proving any of their defenses, the Settlement Class likely would recover substantially less than the amount provided in the Settlement, or nothing at all.

Defendants have agreed to cause to be paid a settlement worth a total value of Two Million, Five Hundred Thousand Dollars ($2,500,000.00), with $1,775,000 to be paid in cash into escrow for the benefit of the Settlement Class, and the remaining $725,000 to be paid in cash or stock.  At this time, it is not possible to make any determination as to how much individual Settlement Class Members may receive from the Settlement.  Plaintiffs have proposed a plan for allocating these amounts to those Settlement Class Members who timely submit valid Proof of Claim Forms.  The Plan of Allocation proposed by Plaintiffs is set forth below, and additional information is available on this website.

All members of the Settlement Class who fail to timely submit an acceptable Claim Form by the deadline set by the Court, or such other deadline as may be ordered by the Court, or otherwise allowed, shall be forever barred from receiving any payments pursuant to the Settlement, but will in all other respects be subject to and bound by the terms of the Settlement, including Settlement Class Members’ release of all Released Claims.

The Court has reserved jurisdiction to allow, disallow, or adjust on equitable grounds the claim of any member of the Settlement Class.

The Plan of Allocation set forth on pages 10-17 of the Notice is the proposed plan submitted by Plaintiffs and Plaintiffs’ Lead Counsel for the Court’s approval.  The Court may approve this plan as proposed or it may modify it without further notice to the Settlement Class.

Each claimant shall be deemed to have submitted to the jurisdiction of the United States District Court for the Southern District of New York with respect to his, her, or its Claim Form.

Persons and entities that exclude themselves from the Settlement Class will not be eligible to receive a distribution from the Settlement Fund and shall not submit Proof of Claim Forms.

If the Settlement is approved, the Court will enter a judgment (the “New York Judgment”).  The New York Judgment will dismiss with prejudice the claims against Defendants and will provide that Plaintiffs and all other Released Plaintiffs’ Persons shall have waived, released, discharged, and dismissed each and every one of the Released Claims, including Unknown Claims , against each and every one of the Released Defendants’ Persons and shall forever be barred and enjoined from commencing, instituting, prosecuting, or maintaining any and all of the Released Claims against any and all of the Released Defendants’ Persons, whether or not they execute and deliver the Claim Form or share in the Settlement Fund.  Claims to enforce the terms of the Settlement are not released.

“Released Plaintiffs’ Claims” means all actions, causes of action, suits, liabilities, claims, rights of action, debts, sums of money, covenants, contracts, controversies, agreements, promises, damages, contributions, indemnities, and demands of every nature and description, whether or not currently asserted, whether known claims or Unknown Claims, suspected, existing, or discoverable, whether arising under federal, state, common, or foreign law, whether based in contract, tort, statute, law, equity, or otherwise (including, but not limited to, federal and state securities laws), that Plaintiffs or any other Settlement Class Member (i) asserted in the Second Amended Complaint; or (ii) could have asserted in the Second Amended Complaint or in any other court, tribunal, proceeding, or other forum that relate to the purchase or other acquisition of Katapult securities between June 15, 2021 and August 9, 2021, both dates inclusive, or the proxy vote (and information provided in advance of the proxy vote) held at FinServ’s June 7, 2021 special meeting, and are based on, arise out of, or relate to the same set of operative facts as those set forth in the Second Amended Complaint, including but not limited to (A) any statements, representations, misrepresentations, or omissions in the Proxy, or (B) Katapult’s financial projections between June 15, 2021 and August 9, 2021 (both dates inclusive).  Notwithstanding the foregoing, “Released Plaintiffs’ Claims” does not include claims relating to the enforcement of the Settlement.

“Released Defendants’ Claims” means all actions, causes of action, suits, liabilities, claims, rights of action, debts, sums of money, covenants, contracts, controversies, agreements, promises, damages, contributions, indemnities, and demands of every nature and description, whether or not currently asserted, whether known claims or Unknown Claims, suspected, existing, or discoverable, whether arising under federal, state, common, or foreign law, whether based in contract, tort, statute, law, equity, or otherwise, that arise out of or are based upon the institution, prosecution, or settlement of the claims against Defendants, except for (i) any claims relating to the enforcement of the Settlement or (ii) any claims against any Person who or which submits a request for exclusion from the Settlement Class that is accepted by the Court.

“Released Defendants’ Persons” means Defendants, FinServ, FinServ Holdings, Keys Merger Sub 1, Inc., Keys Merger Sub 2, LLC, and any and all of their respective current and former directors, officers, employees, employers, parent entities, controlling persons, owners, members, principals, affiliates, subsidiaries, managers, partners, limited partners, general partners, stockholders, representatives, attorneys, financial or investment advisors, consultants, accountants, investment bankers, commercial bankers, agents, heirs, executors, trustees, personal representatives, estates, administrators, predecessors, successors, assigns, insurers, and reinsurers.

“Released Plaintiffs’ Persons” means Plaintiffs, all other Settlement Class Members, Plaintiffs’ Lead Counsel, and any and all of their respective current and former directors, officers, employees, employers, parent entities, controlling persons, owners, members, principals, affiliates, subsidiaries, managers, partners, limited partners, general partners, stockholders, representatives, attorneys, financial or investment advisors, consultants, accountants, investment bankers, commercial bankers, agents, heirs, executors, trustees, personal representatives, estates, administrators, predecessors, successors, assigns, insurers, and reinsurers..  Released Plaintiffs’ Persons does not include any Person who timely and validly seeks exclusion from the Settlement Class.

“Unknown Claims” means (i) any Released Plaintiffs’ Claims that Plaintiffs or any other Settlement Class Member does not know or suspect to exist in his, her, or its favor at the time of the release of the Released Defendants’ Persons, and (ii) any Released Defendants’ Claims that any Defendant does not know or suspect to exist in his, her, or its favor at the time of the release of the Released Plaintiffs’ Persons, including, without limitation, those which, if known, might have affected the decision to enter into the Settlement or to object or not to object to the Settlement.  With respect to any and all Released Claims, the Parties stipulate and agree that, upon the Effective Date of the Settlement, the Parties shall expressly, and by operation of the New York Judgment, each member of the Settlement Class shall be deemed to have, and shall have, expressly waived, relinquished, and released any and all provisions, rights, and benefits conferred by or under Cal. Civ. Code § 1542 or any law of the United States or any state of the United States or territory of the United States, or principle of common law, that is similar, comparable, or equivalent to Cal. Civ. Code § 1542, which provides:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE AND THAT, IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.

The New York Judgment also will provide that Defendants shall be deemed to have waived, released, discharged, and dismissed as against the Released Plaintiffs’ Persons all Released Defendants’ Claims, which include all claims and causes of action of every nature and description, including both known claims and Unknown Claims, whether arising under federal, state, common or foreign law, or any other law, that Defendants could have asserted against any of the Released Plaintiffs Persons, including Plaintiffs’ Counsel, that arise out of or relate in any way to the institution, prosecution, or settlement of the claims in the Action, except for claims relating to the enforcement of the Settlement.

Plaintiffs’ Counsel have not received any payment for their services in pursuing claims against Defendants on behalf of the Settlement Class, nor have Plaintiffs’ Counsel been paid for their expenses.  Before final approval of the Settlement, Plaintiffs’ Lead Counsel intends to apply to the Court for an award of attorneys’ fees on behalf of all Plaintiffs’ Counsel (Wolf Haldenstein and Schall Law Firm) from the Settlement Fund of no more than 33.3% of the Settlement Amount, plus interest.  At the same time, Plaintiffs’ Lead Counsel also intends to apply for payment from the Settlement Fund for Plaintiffs’ Counsel’s litigation expenses in a total amount not to exceed $60,000, plus interest.  The Court will determine the amount of the award of fees and expenses.  Plaintiffs’ Lead Counsel may apply for awards to Plaintiffs in connection with their representation of the Settlement Class.  Such sums as may be approved by the Court will be paid from the Settlement Fund.  Settlement Class Members are not personally liable for any such fees or expenses.  

If you fall within the definition of the Settlement Class as described above, and you are not excluded by the definition of the Settlement Class and you do not elect to exclude yourself from the Settlement Class, then you are a Settlement Class Member, and you will be bound by the proposed Settlement if the Court approves it, and by any judgment or determination of the Court affecting the Settlement Class.  If you are a Settlement Class Member, you must submit a Claim Form and supporting documentation to establish your potential entitlement to share in the proceeds of the Settlement.  A Claim Form is included with the Notice, or you may download a copy of the Claim Form or file your claim online by visiting the File a Claim page on this website.  You may also request a Claim Form by emailing the Claims Administrator at info@Katapult-FinServSecuritiesLitigation.com, calling toll-free 844-552-0057, or using the form of the Contact Us page on this website.  Those who exclude themselves from the Settlement Class, and those who do not submit timely and valid Claim Forms with adequate supporting documentation, will not be entitled to share in the proceeds of the Settlement unless otherwise ordered by the Court.  Please retain all original records of your ownership of, or transactions in the shares, as they may be needed to document your claim.

As a Settlement Class Member, for purposes of the Settlement, you are represented by Plaintiffs, and Plaintiffs’ Lead Counsel, unless you enter an appearance through counsel of your own choice at your own expense.  You are not required to retain your own counsel, but if you choose to do so, such counsel must file a notice of appearance on your behalf.

If you do not wish to remain a Settlement Class Member, you may exclude yourself from the Settlement Class by following the instructions in the section on this page entitled, “What If I Do Not Want To Be A Part Of The Settlement?  How Do I Exclude Myself?”.  If you exclude yourself from the Settlement Class, you will not be eligible to receive any benefit from the Settlement and you should not submit a Claim Form but you will retain the right to be a part of any other lawsuit against any of the Released Defendants Persons with respect to any of the Released Plaintiffs’ Claims.

If you wish to object to the Settlement or any of its terms, the proposed Plan of Allocation, or Plaintiffs’ Lead Counsel’s application for attorneys’ fees and litigation expenses, and if you do not exclude yourself from the Settlement Class, you may present your objections by following the instructions in the section on this page entitled, “When And Where Will The Court Decide Whether To Approve The Settlement?”.  If you exclude yourself from the Settlement Class, you are not entitled to submit an objection.

Each Settlement Class Member will be bound by all determinations and judgments in this lawsuit concerning the Settlement, whether favorable or unfavorable, unless such person or entity mails, by first-class mail (or its equivalent outside the U.S.), or otherwise delivers a written request for exclusion from the Settlement Class, addressed to Katapult Securities Litigation, ATTN: EXCLUSION REQUEST, c/o JND Legal Administration, PO Box 91340, Seattle, WA 98111.  The exclusion request must be received no later than November 22, 2024. Each request for exclusion must clearly indicate the name, address and telephone number of the person or entity seeking exclusion, that the sender requests to be excluded from the Settlement Class in McIntosh v. Katapult Holdings, Inc., et al., No. 1:21-cv-07251, and must be signed by such person.  Such persons or entities requesting exclusion are also directed to provide the following information: (1) the number of Katapult securities that the Person requesting exclusion (i) owned as of the opening of trading on June 15, 2021; and (ii) purchased, acquired and/or sold from June 15, 2021 through August 9, 2021, inclusive, as well as the number of shares, dates and prices for each such purchase, acquisition and sale; and/or (2) the number of FinServ common stock that the Person requesting exclusion beneficially owned as of May 11, 2021 rendering them eligible to vote at FinServ’s June 7, 2021 special meeting.  The request for exclusion shall not be effective unless it provides the required information and is made within the time stated above, or the exclusion is otherwise accepted by the Court.  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.  

If you do not want to be part of the Settlement Class, you must follow these instructions for exclusion even if you have pending, or later file, another lawsuit, arbitration, or other proceeding relating to any Released Claim against any of the Released Defendants’ Persons.  Excluding yourself from the Settlement Class is the only option that allows you to be part of any other current or future lawsuit against Defendants or any of the other Released Defendant Persons concerning the Released Claims.  Please note, however, if you decide to exclude yourself from the Settlement Class, you may be time-barred from asserting the claims covered by the Action by a statute of limitations and/or statute of repose.

If you ask to be excluded, do not submit a Claim Form because you cannot receive any payment from the Settlement Fund.  If a person or entity requests to be excluded from the Settlement Class, that person or entity will not receive any benefit provided for in the Stipulation.

If the requests for exclusion from the Settlement exceed a certain amount, as set forth in a separate confidential supplemental agreement between Plaintiffs and Defendants (the “Supplemental Agreement”), Defendants shall have, in their discretion, the option to terminate the Settlement in accordance with the procedures set forth in the Supplemental Agreement.

If you do not wish to object in person to the proposed Settlement, the proposed Plan of Allocation, and/or the application for attorneys’ fees and litigation expenses, you do not need to attend the Settlement Hearing.  You can object to or participate in the Settlement without attending the Settlement Hearing.

The Settlement Hearing will be held on December 13, 2024, at 10:00 a.m., before the Honorable Katharine H. Parker, at the United States District Court, Southern District of New York, Courtroom 17D, 500 Pearl Street, New York, NY 10007, or remotely per details that will be made publicly available on this website in advance of the Settlement Hearing.  The Court reserves the right to approve the Settlement or the Plan of Allocation, Plaintiffs’ Lead Counsel’s motion for an award of attorneys’ fees and expenses, and/or any other matter related to the Settlement at or after the Settlement Hearing without further notice to the members of the Settlement Class.

Any Settlement Class Member who does not request exclusion such that it is received no later than November 22, 2024, may object to the Settlement, the Plan of Allocation, or Lead Counsel’s request for an award of attorneys’ fees and litigation expenses.   You can ask the Court to deny approval by filing an objection.  You cannot ask the Court to order a different settlement; the Court can only approve or reject the settlement.  If the Court denies approval, no settlement payments will be sent out and the lawsuit will continue.  If that is what you want to happen, you must object.

Any objection to the proposed Settlement must be in writing.  All written objections and supporting papers must (a) clearly identify the case name and number (McIntosh v. Katapult Holdings, Inc., et al., No. 1:21-cv-07251 (AS)), (b) be submitted to the Court either by mailing them to the Clerk of the Court, United States District Court, Southern District of New York, Courtroom 17D, 500 Pearl Street, New York, NY 10007, or by filing them in person at any location of the United States District Court for the Southern District of New York, and (c) be received or filed on or before November 22, 2024.

The notice of objection must include documentation establishing the objecting person’s membership in the Settlement Class, including (1) the number of Katapult securities that the objecting person (i) owned as of the opening of trading on June 15, 2021, and (ii) purchased, acquired and/or sold during the Settlement Class Period, as well as the dates and prices for each such purchase, acquisition and sale, and/or (2) the number of FinServ common stock that the objecting person beneficially owned as of May 11, 2021 rendering them eligible to vote at FinServ’s June 7, 2021 special meeting. The notice of objection must also contain a statement of reasons for the objection, copies of any papers, briefs, or other documents upon which the objection is based, a statement of whether the objector intends to appear at the Settlement Hearing, and the objector’s signature, even if represented by counsel.  The objection must state whether it applies only to the objector, to a specific subset of the Settlement Class, or to the entire Settlement Class.  In addition, the objector must identify all class action settlements to which the objector or his, her or its counsel have previously objected.  Documentation establishing membership in the Settlement Class must consist of copies of brokerage confirmation slips or monthly brokerage account statements, or an authorized statement from the objector’s broker containing the transactional and holding information found in a broker confirmation slip or account statement.  Objectors who desire to present evidence at the Settlement Hearing in support of their objection must include in their written objection or notice of appearance the identity of any witnesses they may call to testify and any exhibits they intend to introduce into evidence at the hearing.

You may not object to the Settlement or any aspect of it if you exclude yourself from the Settlement Class.

You may file a written objection without having to appear at the Settlement Hearing.  You may not appear at the Settlement Hearing to present your objection, however, unless you have first filed a written objection in accordance with the procedures described above, unless the Court orders otherwise.

You are not required to hire an attorney to represent you in making written objections or in appearing at the Settlement Hearing.  If you decide to hire an attorney, which will be at your own expense, he or she must file a notice of appearance with the Court so that the notice is received on or before November 22, 2024.

The Settlement Hearing may be adjourned by the Court without further written notice to the Settlement Class, other than a posting of the adjournment on this website. If you plan to attend the Settlement Hearing, you should confirm the date and time with Plaintiffs’ Lead Counsel.

Unless the Court orders otherwise, any Settlement Class Member who does not object in the manner described above will be deemed to have waived any objection and shall be forever foreclosed from making any objection to the proposed Settlement, the proposed Plan of Allocation, or Lead Counsel’s request for an award of attorneys’ fees and litigation expenses.  Settlement Class Members do not need to appear at the hearing or take any other action to indicate their approval.

Nominees who purchased or acquired Katapult securities (common stock and/or warrants) and/or FinServ common stock for beneficial owners who are Settlement Class Members are directed to: (a) request within seven (7) calendar days of receipt of the Notice additional copies of the Notice and the Claim Form from the Claims Administrator for such beneficial owners; or (b) send a list of the names and addresses of such beneficial owners to the Claims Administrator within seven (7) calendar days after receipt of the Notice.  If a nominee elects to send the Notice to beneficial owners, such nominee is directed to mail the Notice within seven (7) calendar days of receipt of the additional copies of the Notice from the Claims Administrator, and upon such mailing, the nominee shall send a statement to the Claims Administrator confirming that the mailing was made as directed, and the nominee shall retain the list of names and addresses for use in connection with any possible future notice to the Settlement Class.  Upon full compliance with these instructions, including the timely mailing of the Notice to beneficial owners, such nominees may seek reimbursement of their reasonable expenses actually incurred in complying with these instructions in an amount not to exceed $0.10 plus postage at the current pre-sort rate used by the Claims Administrator per Notice Packet; or $0.05 per Notice Packet transmitted by email; or $0.05 per name, mailing address, and email address (to the extent available) provided to the Claims Administrator, by providing the Claims Administrator with proper documentation supporting the expenses for which reimbursement is sought and reflecting compliance with these instructions, including timely mailing of the Notice, if the nominee elected or elects to do so.  Such properly documented expenses incurred by nominees in compliance with the terms of these instructions will be paid from the Settlement Fund.  Copies of the Notice may also be obtained by calling toll-free 844-552-0057, and may be downloaded from the File a Claim page of this website.

The Notice contains only a summary of the terms of the proposed Settlement.  More detailed information about the matters involved in the Action is available on this website, including, among other documents, copies of the Stipulation and Proof of Claim Form. The Notice summarizes the proposed Settlement.  For the precise terms and conditions of the Settlement, please see the Stipulation available at this website, or by contacting Plaintiffs’ Lead Counsel below.  You may also access the Court docket in this case, for a fee, through the Court’s Public Access to Court Electronic Records (PACER) system at https://pacer.uscourts.gov, or by visiting the office of the Clerk of the Court for the United States District Court, Southern District of New York, Courtroom 15A, 500 Pearl Street, New York, NY 10007, during regular office hours, Monday through Friday, excluding Court holidays.  All inquiries concerning the Notice or the Claim Form should be directed to:

Katapult Securities Litigation
c/o JND Legal Administration
PO Box 91340
Seattle, WA 98111
844-552-0057
info@Katapult-FinServSecuritiesLitigation.com

Claims Administrator
-or-
Matthew M. Guiney, Esq.
WOLF HALDENSTEIN ADLER FREEMAN & HERZ LLP
270 Madison Avenue
New York, NY 10016
212-545-4600
guiney@whafh.com

Lead Counsel

DO NOT CALL OR WRITE THE COURT, DEFENDANTS, DEFENDANTS’ COUNSEL, OR THE OFFICE OF THE CLERK OF COURT
REGARDING THE NOTICE.