NEW YORK, Jan. 18, 2023 (GLOBE NEWSWIRE) — Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Sunlight Financial Holdings Inc. (“Sunlight” or the “Company”) SUNL. A complaint has been filed on behalf of investors who purchased or otherwise acquired Sunlight securities between January 25, 2021 and September 28, 2022, inclusive (the “Class Period”). Click Here to Join Investigation.
If you acquired Sunlight securities during the Class Period and would like to discuss this case or our investigation, please contact us by emailing firstname.lastname@example.org or by calling (646) 315-9003 or our toll free number 1 (800) 290-1952.
If you are a member of the proposed Class, you may move the court no later than February 14, 2023 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
On September 28, 2022, after the market closed, Sunlight disclosed that it would record a “non-cash advance receivables impairment charge of $30 to $33 million during the Company’s fiscal quarter ending September 30, 2022.” The Company explained that “the Company 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 the Company to collect on advances outstanding to such installer.”
The same day, the Company also issued a press release withdrawing its full-year 2022 outlook due to the “installer liquidity event.” Further, the Company’s CEO was quoted as stating, “[w]hile our risk exposure with other contractor advances is much smaller (the next three partner advances being $10 million, $7 million, and $5 million respectively), we are re-underwriting all contractor partners’ advances to further mitigate risk going forward.”
Following this news, Sunlight’s stock price fell $1.44 per share, or 57.1%, to close at $1.08 per share on September 29, 2022.
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose to investors the following: (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) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
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