CLASS ACTION UPDATE: Law Office of Brodsky & Smith Reminds Investors of Deadline in Class Action Against Sunlight Financial Holdings Inc. (NYSE – SUNL)
BALA CYNWYD, December 21, 2022 /Newsfile/ – Law office of Brodsky & Smith reminds investors of the deadline to file regarding claims against Sunlight Financial Holdings Inc. (“Sunlight Financial” or the “Company”) (NYSE – SUNL) for possible breaches of Federal Securities law. Sunlight Financial is a point-of-sale (“POS”) financing platform that provides residential solar and home improvement contractors with the ability to offer POS financing to their customers when purchasing residential solar systems or other home improvements. The Company was formerly known as Spartan Acquisition Corp II.
If you purchased or otherwise acquired shares of Sunlight Financial between January 25, 2021 and September 28, 2022 (the “Class Period”), and wish to discuss the legal ramifications of the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith who will, without obligation or cost to you, attempt to answer your questions. The deadline for filing is February 14, 2023. You may contact Marc Ackerman, Esquire or Jason Brodsky, Esquire at Brodsky & Smith, Two Bala Plaza, Suite 805, Bala Cynwyd, PA 19004, , or call toll free 877-534-2590. There is no cost or obligation to you.
On September 28, 2022, Sunlight Financial disclosed that it would record a “non-cash advance receivables impairment charge of $30 million to $33 million during [Sunlight Financial]’s fiscal quarter ending September 30, 2022.” Sunlight Financial explained that it “was informed of certain actions taken by one of its installer partners to address liquidity issues faced by the installer” which “would likely result in an inability of [Sunlight Financial] to collect on advances outstanding to such installer.” Sunlight Financial also issued a press release withdrawing its full-year 2022 outlook.
On this news, Sunlight Financial shares declined by more than 57%.
According to the filed complaint, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) Sunlight Financial lacked effective underwriting and risk evaluation with respect to its contractor advance program; (ii) Sunlight Financial lacked the oversight and periodic monitoring systems necessary to timely detect bad debt associated with its contractor advance program; (iii) Sunlight Financial lacked effective internal controls over accounting and reporting of non-cash advance receivables; and (iv) as a result, Sunlight Financial would be forced to take a non-cash advance receivables impairment charge exceeding $30 million.
Brodsky & Smith is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.