Spartan DeSpac $8 Million Securities Class Action Settlement

Investors who held Spartan Acquisition Corp. II Class A common stock as of 5 p.m. Eastern time on July 6, 2021, and did not redeem all of their shares in connection with the business combination between Spartan and Sunlight Financial Holdings LLC may be eligible to receive a cash payment from a class action settlement.

Spartan Acquisition Sponsor II LLC, Apollo Global Management Inc., AP Spartan Energy Holdings II LP and several individual defendants agreed to pay $8 million to settle a class action lawsuit alleging they impaired Spartan stockholders' redemption rights in connection with the merger with Sunlight Financial Holdings LLC and that it distributed a misleading or incomplete merger proxy and related disclosures.

Who can file a claim?

The settlement class includes all record and beneficial holders of Spartan Class A common stock as of 5 p.m. Eastern time on July 6, 2021, who did not redeem all of their shares in connection with the merger, including successors-in-interest who obtained shares by operation of law

Additional details

• Both individuals and entities can be class members.
• The settlement includes shareholders who held stock directly and those who held through a broker or other nominee.
• The class is certified solely for settlement purposes and is a non-opt-out class under Delaware Court of Chancery Rules 23(a), 23(b)(1) and 23(b)(2), meaning class members cannot exclude themselves from the settlement.

How much can class members get?

The total settlement fund is $8,000,000. The amount each class member receives depends on several factors:

• The number of eligible shares held as of 5 p.m. Eastern time on July 6, 2021
• The total number of eligible shares all class members held

The settlement administrator will distribute the net settlement fund to eligible class members on a pro rata basis according to the court-approved plan of allocation:

• Each eligible class member will receive a pro rata payment equal to the net settlement fund multiplied by the number of eligible shares the class member held divided by the total number of eligible shares.
• Eligible shares are shares of Spartan Class A common stock held immediately after the redemption deadline that the class member did not submit for redemption in connection with the merger.
• If a brokerage account held the class member's eligible shares, the broker will deposit the settlement payment into the same account.

No claim form required

Eligible class members do not need to submit a claim form to receive payment. The settlement administrator will distribute payments directly based on records of share ownership as of the redemption deadline.

Class members with questions can contact the settlement administrator at info@SpartanDeSPACStockholderSettlement.com or 1-877-748-7038.

$8 million settlement fund

The $8,000,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $1,600,000
• Attorneys' expenses: Up to $250,000
• Payments to eligible class members: Remainder of the fund

Important date

• Settlement hearing: May 1, 2026

When is the Spartan securities class action settlement payout date?

The settlement administrator will issue payments after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Spartan's sponsor, directors, officers and related entities impaired stockholders' redemption rights in connection with the merger with Sunlight Financial Holdings LLC. The plaintiffs claimed the merger proxy and related SEC filings misrepresented the reasons for the merger, contained misleading financial projections and concealed material information from stockholders.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the risks, costs and delays of continued litigation.

Sources

1. Class notice
2. Settlement website FAQ page