According to the Complaint, Sunlight Financial Holdings Inc. f/k/a Spartan Acquisition Corp. II claims to be a business-to-business-to-consumer POS financing platform that provides residential solar and home improvement contractors the ability to offer seamless POS financing to their customers when purchasing residential solar systems or other home improvements. Sunlight became a publicly traded company in July 2021 via the business combination of Spartan Acquisition Corp. II, a publicly traded special purpose acquisition company, with Sunlight Financial LLC.

The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, the Complaint alleges 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/or lacked reasonable basis at all relevant times.

On March 8, 2023, the Court issued an Order appointing Lead Plaintiff and Counsel. Lead Plaintiff filed an amended Complaint on May 22. Defendants filed a Motion to Dismiss the amended Complaint on July 21. On October 20, Lead Plaintiff filed a second amended Complaint. Lead Plaintiff re-filed the second amended Complaint on October 24. On November 7, the Court dismissed Defendants' pending Motion to Dismiss as moot in light of the second amended Complaint.

On July 9, 2024, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on August 15. On December 16, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.