Spruce Power Holding Reported Settlement Agreement; Co To Pay $19.5M To Settlement Fund For All Claims Asserted In Class Action Litigation
Portfolio Pulse from Charles Gross
Spruce Power Holding (SPRU) has reached a settlement agreement to pay $19.5 million to resolve a class action litigation. The settlement received preliminary approval from the court and a final approval hearing is scheduled for April 30, 2024. The settlement fund will cover all claims, legal fees, and administrative costs, with no reversion to the company. SPRU's D&O liability insurers will fund $4 million, while SPRU will cover the remaining $15.5 million, which was accrued in Q3 2023 earnings.
January 22, 2024 | 10:39 pm
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Spruce Power Holding has agreed to a $19.5M settlement in a class action lawsuit, with insurers funding $4M and SPRU funding the remaining $15.5M, which was already accounted for in Q3 2023 earnings.
The settlement is significant for SPRU, but since the company already accrued the settlement amount in Q3 2023, the financial impact is likely already reflected in the stock price. The news confirms the resolution of the litigation, which removes uncertainty, but the cost was anticipated. Therefore, the short-term impact on the stock price is expected to be neutral.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100