SUNL Class Action Deadline Alert: Johnson Fistel Encourages Shareholders to Submit Their Sunlight Financial Losses
Shareholder rights law firm Johnson Fistel, LLP announces that a class action lawsuit has commenced on behalf of investors of Sunlight Financial Holdings Inc. f/k/a Spartan Acquisition Corp. II (“Sunlight” or the “Company”) (NYSE: SUNL). The class action is on behalf of shareholders who purchased Sunlight securities between January 25, 2021 and September 28, 2022, inclusive (the “Class Period”) Investors are hereby notified that they have until February 14, 2023, to move the Court to serve as lead plaintiff in this action.
What actions may I take at this time? If you suffered a loss and are interested in learning more about being a lead plaintiff, please contact Jim Baker (firstname.lastname@example.org) by email or phone at 619-814-4471. If emailing, please include a phone number.
There is no cost or obligation to you.
On September 28, 2022, Sunlight issued a press release “announc[ing] that an installer liquidity event and volatile interest rates will impact its full-year 2022 financial performance” and that “[a]s a result, the Company is withdrawing its previously-provided full-year 2022 outlook metrics.” Sunlight stated that “[o]ne of Sunlight’s largest solar installers has notified the Company that due to cash flow challenges, the installer is in the process of winding down its operations, likely restricting its ability to fully meet its financial obligations. As a result, Sunlight expects to impair $30 to $33 million in advances to that installer on the Company’s balance sheet as of September 30, 2022.”
The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that the Company lacked effective underwriting and risk evaluation with respect to its contractor advance program; (2) that Sunlight lacked the oversight and periodic monitoring systems necessary to timely detect bad debt associated with its contractor advance program; (3) that the Company lacked effective internal controls over accounting and reporting of non-cash advance receivables; (4) that, as a result, the Company would be forced to take a non-cash advance receivables impairment charge exceeding $30 million; and (5) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and lacked a reasonable basis at all relevant times.
A lead plaintiff will act on behalf of all other class members in directing the Sunlight class-action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the class-action lawsuit. An investor’s ability to share any potential future recovery of the Sunlight class action lawsuit is not dependent upon serving as lead plaintiff.
For more information regarding the lead plaintiff process please refer to https://www.johnsonfistel.com/lead-plaintiff-deadlines.
About Johnson Fistel, LLP:
Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. Johnson Fistel seeks to recover losses incurred due to violations of federal securities laws. For more information about the firm and its attorneys, please visit http://www.johnsonfistel.com. Attorney advertising. Past results do not guarantee future outcomes.
Johnson Fistel, LLP
Jim Baker, 619-814-4471