FinServ Acquisition Corp. SPAC Litigation Settlement ($9.5M)

If you held Class A common stock of FinServ Acquisition Corp. (NASDAQ: FSRV) as of the closing of FinServ’s merger with legacy Katapult Holdings, Inc. on June 9, 2021, you may be eligible to claim a pro rata share of the class action settlement.

FinServ Acquisition Corp. has agreed to pay $9,500,000 to settle a class action lawsuit for alleged breaches of fiduciary duties by its directors during the merger with Katapult Holdings, Inc.

Who can submit a claim?

The class members eligible to submit a claim are all record and beneficial holders of Class A common stock of FinServ as of the closing of the de-SPAC Transaction on June 9, 2021. This includes both direct and indirect shareholders who held their shares through intermediaries such as brokers or custodians.

How much can class members get?

The settlement amount of $9,500,000 will be distributed among eligible class members. This amount includes $6,725,000 in cash and $2,775,000 in either shares of freely-tradeable Katapult common stock or additional cash.

The distribution will be on a pro rata basis, meaning each class member will receive a portion of the settlement fund proportional to the number of eligible shares they held. The Per-Share Recovery will be calculated by dividing the total amount of the Delaware Net Settlement Fund by the total number of Eligible Shares held by all Eligible Class Members.

Is proof required to submit a claim?

Proof is not applicable. Eligible class members do not need to submit a claim form to receive their payment. The Settlement Administrator already has the necessary information to distribute the funds.

How to claim an award

Eligible class members do not need to take any action to claim their award. The Settlement Administrator will automatically distribute the payments based on the records of the eligible shares held as of June 9, 2021.

Claim instructions

Since no action is required from the class members to claim their award, there are no specific steps to follow. The Settlement Administrator will handle the distribution process.

How do I get paid?

Payments will be made directly to eligible class members. If you held your shares through a broker or intermediary, the payment will be made to the intermediary, who will then distribute it to you.

$9,500,000 Settlement Fund

The settlement fund of $9,500,000 will cover the following:

• $6,725,000 in cash
• $2,775,000 in either shares of freely-tradeable Katapult common stock or additional cash
• Attorneys' fees and expenses, not to exceed 20% of the settlement fund
• Incentive award to the plaintiff, not to exceed $5,000

Important dates

• Settlement Hearing: October 10, 2024, at 3:15 p.m.

When is the FinServ Acquisition Corp. SPAC Litigation payout date?

The awards will be paid after the Court approves the settlement and any appeals are resolved. This process may take some time, so please be patient.

Why is there a class action settlement?

The class action settlement addresses allegations that the directors of FinServ Acquisition Corp. breached their fiduciary duties during the merger with Katapult Holdings, Inc. The settlement aims to compensate the affected shareholders for any potential losses incurred due to these alleged breaches.

Products or services that are the subject of the settlement

The settlement pertains to the shares of FinServ Acquisition Corp. Class A common stock held by shareholders as of the closing of the de-SPAC Transaction on June 9, 2021.

What happens next?

The next steps include the Court's approval of the settlement and the distribution of the settlement funds to eligible class members. If you are an eligible class member, you do not need to take any action to receive your payment.