A securities class action has been filed in the USDC — N.J. against Sunlight Financial Holdings Inc. (f/k/a Spartan Acquisition Corp. II) (SUNLQ) (“Ford” or the “Company”), on behalf of all persons on behalf of all persons who purchased or otherwise acquired Sunlight Financial Holdings, Inc. and/or Spartan Acquisition Corp. II (“Spartan”) (collectively, “Sunlight”) securities between January 25, 2021 and October 31, 2023, both dates inclusive (the “Class Period”).
Sunlight was at all relevant times a technology-enabled point-of-sale financing platform that, during the Class Period, provided residential solar and home improvement contractors the ability to offer point-of-sale financing to those contractors’ customers when purchasing residential solar systems or certain other home improvements. Such loans were funded by Sunlight’s capital providers and facilitated by Sunlight’s proprietary technology platform, Orange, through which Sunlight offered instant credit decisions to homeowners nationwide at point-of-sale on behalf of Sunlight’s capital providers.
The Complaint alleges that Cross River Bank (“CRB”) engaged in a plan or scheme that enabled Sunlight to originate and conceal from its investors a large pool of loans to unscrupulous solar panel installers of dubious credit quality, and a massive amount of funded but unsold mispriced solar loans that CRB warehoused, that is, loans for which Sunlight retained full economic exposure until those loans were sold, but which were not reflected on Sunlight’s balance sheet, thereby harming investors.
On October 31, 2023, Sunlight announced it had filed for Chapter 11 bankruptcy with a pre-packaged plan whereby CRB would provide exit financing in return for 12.5% of the New Equity in the reorganized company. On this news, shares of Sunlight closed to $0.25 per share from $0.38 per share on October 30, 2023.
If you purchased Sunlight securities during the class period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.
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