Bernstein Litowitz Berger & Grossmann LLP and Andrews & Springer LLC Announce Notice of Pendency and Proposed Settlement of Class Action Involving Record and Beneficial Holders of Class A Common Stock of FinServ Acquisition Corp.

SEATTLE, Aug. 23, 2024 /PRNewswire/ --

IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE

SUMMARY NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF STOCKHOLDER CLASS ACTION, SETTLEMENT HEARING, AND RIGHT TO APPEAR

TO:  All record and beneficial holders of Class A common stock of FinServ Acquisition Corp. ("FinServ") as of the closing FinServ's merger with legacy Katapult Holdings, Inc., which closed on June 9, 2021 ("de-SPAC Transaction") ("Settlement Class").

IF YOU DO NOT INTEND TO OBJECT TO THE SETTLEMENT, PLAINTIFF'S COUNSEL'S FEE AND EXPENSE AWARD (DEFINED BELOW), OR PLAINTIFF'S INCENTIVE AWARD (DEFINED BELOW), YOU NEED NOT TAKE ACTION IN RESPONSE TO THIS NOTICE.

Certain persons and entities are excluded from the Settlement Class by definition, as set forth in the full Notice of Pendency and Proposed Settlement of Stockholder Class Action, Settlement Hearing, and Right to Appear (the "Notice"), available at www.FinServAcquisitionCorpSPACLitigation.com.  Any undefined capitalized terms used in this Summary Notice shall have the meanings given to them in the Notice or in the Stipulation and Agreement of Settlement, Compromise, and Release dated July 3, 2024 ("Stipulation"), which is also available at www.FinServAcquisitionCorpSPACLitigation.com.

PLEASE READ THIS SUMMARY NOTICE CAREFULLY. YOUR RIGHTS WILL BE AFFECTED BY A CLASS ACTION LAWSUIT PENDING IN THIS COURT.

YOU ARE HEREBY NOTIFIED, pursuant to an Order of the Court of Chancery of the State of Delaware ("Court"), that the above-captioned stockholder class action ("Action") has been preliminarily certified as a class action on behalf of the Settlement Class defined above.

YOU ARE ALSO NOTIFIED that (i) plaintiff Andrew Saunders ("Plaintiff"), on behalf of himself and all other members of the Settlement Class; and (ii) defendants Lee Einbinder, Howard Kurz, Robert Matza, Diane B. Glossman, and Aris Kekedjian (collectively, "Defendants") have reached a proposed settlement of the Action on the terms set forth in the Stipulation ("Settlement").  Pursuant to the Settlement, Defendants have agreed to pay, or cause to be paid, $9,500,000 in total settlement value, with $6,725,000 paid in cash and the remaining $2,775,000 paid in either shares of freely-tradeable Katapult Holdings, Inc. ("Katapult") common stock or additional cash.  If approved by the Court, the Settlement will resolve all claims in the Action.

A hearing ("Settlement Hearing") will be held in person on October 10, 2024, at 3:15 p.m., before The Honorable Paul A. Fioravanti, Jr., Vice Chancellor, at the Court of Chancery of the State of Delaware, New Castle County, Leonard L. Williams Justice Center, 500 North King Street, Wilmington, DE 19801, or remotely by telephone or videoconference (in the discretion of the Court), to, among other things: (i) determine whether to finally certify the Settlement Class for settlement purposes only, pursuant to Court of Chancery Rules 23(a), 23(b)(1), and 23(b)(2); (ii) determine whether Plaintiff and Plaintiff's Lead Counsel—Bernstein Litowitz Berger & Grossmann LLP and Andrews & Springer LLC—have adequately represented the Settlement Class, and whether Plaintiff should be finally appointed as Class Representative for the Settlement Class and Plaintiff's Lead Counsel should be finally appointed as Class Counsel for the Settlement Class; (iii) determine whether the proposed Settlement should be approved as fair, reasonable, and adequate to Plaintiff and the other members of the Settlement Class; (iv) determine whether the proposed Order and Final Judgment approving the Settlement, dismissing the Action with prejudice, and granting the Releases provided under the Stipulation should be entered; (v) determine whether the terms and conditions of the issuance of the Delaware Settlement Shares, which shares are to be issued pursuant to the exemption from registration requirements under Section 3(a)(10) of the Securities Act of 1933, are fair to all persons and entities to whom the shares will be issued; (vi) determine whether the proposed Plan of Allocation of the Delaware Net Settlement Fund is fair and reasonable, and should therefore be approved; (vii) determine whether and in what amount any award of attorneys' fees and payment of Litigation Expenses to Plaintiff's Counsel ("Fee and Expense Award") should be paid out of the Delaware Settlement Fund, including any incentive award to Plaintiff ("Incentive Award") to be paid solely from any Fee and Expense Award; (viii) hear and rule on any objections to the Settlement, the proposed Plan of Allocation, and Plaintiff's Counsel's application for a Fee and Expense Award, including any Incentive Award to Plaintiff; and (ix) consider any other matters that may properly be brought before the Court in connection with the Settlement.  Any updates regarding the Settlement Hearing, including any changes to the date, time, or format of the hearing or updates regarding remote or in-person appearances at the hearing, will be posted to the Settlement website, www.FinServAcquisitionCorpSPACLitigation.com.

If you are a member of the Settlement Class, your rights will be affected by the pending Action and the Settlement, and you may be entitled to share in the Delaware Net Settlement Fund.  If you have not yet received the Notice, you may obtain a copy of the Notice by contacting the Settlement Administrator by mail at FinServ Acquisition Corp. SPAC Litigation, c/o JND Legal Administration, PO Box 91493, Seattle, WA 98111; by telephone at 844-552-0061; or by email at [email protected].  A copy of the Notice can also be downloaded from the Settlement website, www.FinServAcquisitionCorpSPACLitigation.com.

If the Settlement is approved by the Court and the Effective Date occurs, the Delaware Net Settlement Fund will be distributed on a pro rata basis to Eligible Class Members in accordance with the proposed Plan of Allocation stated in the Notice or such other plan of allocation as is approved by the Court.  Pursuant to the proposed Plan of Allocation, each Eligible Class Member will be eligible to receive a pro rata payment from the Delaware Net Settlement Fund equal to the product of (i) the number of shares of FinServ Class A common stock held as of the closing of the de-SPAC Transaction on June 9, 2021, excluding those shares held by Excluded Persons and Redeeming Stockholders ("Eligible Shares") and (ii) the "Per-Share Recovery" for the Settlement, which will be determined by dividing the total amount of the Delaware Net Settlement Fund by the total number of Eligible Shares held by all Eligible Class Members, provided, however, that no cash payments for less than $1.00 will be made.  As explained in further detail in the Notice, Eligible Class Members do not have to submit a claim form to receive a payment from the Delaware Net Settlement Fund.

Any objections to the proposed Settlement, the proposed Plan of Allocation, or Plaintiff's Counsel's Fee and Expense Award, including Plaintiff's application for an Incentive Award, must be filed with the Register in Chancery in the Court of Chancery of the State of Delaware and delivered to Plaintiff's Lead Counsel and Defendants' Counsel such that they are received no later than September 25, 2024, in accordance with the instructions set forth in the Notice.

Please do not contact the Court or the Office of the Register in Chancery regarding this Summary Notice.  All questions about this Summary Notice, the proposed Settlement, or your eligibility to participate in the Settlement should be directed to the Settlement Administrator or Plaintiff's Lead Counsel.

Requests for the Notice should be made to the Settlement Administrator:

FinServ Acquisition Corp. SPAC Litigation
c/o JND Legal Administration
PO Box 91493
Seattle, WA 98111
844-552-0061
[email protected]
www.FinServAcquisitionCorpSPACLitigation.com

Inquiries, other than requests for the Notice, should be made to Plaintiff's Lead Counsel:

Jeroen van Kwawegen
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of the Americas
44th Floor
New York, NY 10020
800‑380‑8496
[email protected]

David M. Sborz
Andrews & Springer LLC
4001 Kennett Pike
Suite 250
Wilmington, DE 19807
(302) 231-2388
[email protected]

Please Note:  The parties to a related class action captioned McIntosh v. Katapult Holdings, Inc., No. 1:21-cv-07251-AS pending in the United States District Court for the Southern District of New York ("New York Action") have reached a proposed settlement of the New York Action ("New York Settlement").  Pursuant to the New York Settlement, Defendants have agreed to pay, or cause to be paid, $2,500,000 in total settlement value, with $1,775,000 paid in cash and the remaining $725,000 paid in either shares of freely-tradeable Katapult common stock or additional cash.  The New York Settlement resolves claims brought on behalf of a class consisting of persons and entities that (i) purchased or otherwise acquired Katapult securities between June 15, 2021 and August 9, 2021 (both dates inclusive) and/or (ii) beneficially owned and/or held common stock of FinServ as of May 11, 2021 and were eligible to vote at FinServ's June 7, 2021 special meeting.  For additional information about the New York Settlement, please contact JND Legal Administration at Katapult Securities Litigation, c/o JND Legal Administration, PO Box 91340, Seattle, WA 98111; [email protected]; www.Katapult-FinServSecuritiesLitigation.com.

BY ORDER OF THE COURT
OF CHANCERY OF THE
STATE OF DELAWARE

SOURCE Bernstein Litowitz Berger & Grossmann LLP and Andrews & Springer LLC

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED