Friday, 04 October 2024 03:45 PM
Class Action
PHILADELPHIA, PA / ACCESSWIRE / October 4, 2024 / Rosca Scarlato, LLC informs investors that it has filed a securities class action in the United States District Court for the District of New Jersey against Cross River Bank ("CRB"), Bank Partner to Sunlight Financial Holdings, Inc. f/k/a Spartan Acquisition Corp. II ("Sunlight") (NYSE:SUNL)(OTC:SUNLQ)(NYSE:SPRQ). The action is captioned Wax v. Cross River Bank, Case No. 2:24-cv-09510 and is brought on behalf of investors who purchased Sunlight securities between January 25, 2021 and October 31, 2023, inclusive (the "Class Period").
Investor Deadline: Investors who purchased or acquired Sunlight securities during the Class Period may, no later than December 2, 2024 seek to be appointed as a lead plaintiff representative of the class. For additional information or to learn how to participate in this litigation, please contact Rosca Scarlato partner Paul Scarlato at [email protected] or (216) 946-7070 or visit www.rscounsel.law.
According to the complaint, during the Class Period, CRB engaged in a scheme to extend loans to disreputable solar contractors of dubious credit quality and facilitate Sunlight's accumulation of a large pool of fixed-rate loans on CRB's balance sheet for which Sunlight retained the risk of loss. Those loans contained enormous levels of risk of default and interest rate risk for Sunlight, but Sunlight lacked the necessary capital to tolerate a default or significant rise in interest rates.
Neither Sunlight nor CRB disclosed to Plaintiff and the Class the magnitude of that risk or, when interest rates increased, the extent of Sunlight's mounting off-balance sheet liabilities (which were being warehoused on the balance sheet of Sunlight's Bank Partner, CRB).
A series of disclosures beginning on September 28, 2022 through October 31,2023 revealed the true state of Sunlight's financial picture. Sunlight's stock price fell on the news from a closing price of $2.52 per share on September 28, 2022 to $0.25 per share on October 31, 2023 when Sunlight announced it had filed for Chapter 11 bankruptcy.
Any member of the purported class may move the Court to serve as a lead plaintiff through counsel of his/her choice. A lead plaintiff is usually the investor or small group of investors who have the largest financial interest and who are also adequate and typical of the proposed class of investors. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may choose to do nothing and remain a member of the proposed class.
Rosca Scarlato maintains offices in suburban Philadelphia, Pennsylvania and Cleveland, Ohio. Rosca Scarlato's lawyers have decades of experience representing individual and institutional investors in securities class actions in courts throughout the United States.
Contact:
Paul Scarlato
Rosca Scarlato
(216) 946-7070
[email protected]
SOURCE: Rosca Scarlato, LLC