Spruce Power Holding Corp (NYSE:SPRU), an electric services provider, has settled a shareholder derivative lawsuit, as per the latest SEC filings. The United States District Court for the District of Massachusetts approved the settlement, which includes $1 million in attorney fees, on August 15, 2024.
The legal actions resolved include the case Kay v. Frodl, et al., in Massachusetts, and a related case in Delaware, as well as a shareholder litigation demand made on the company's board of directors.
The Massachusetts Court had initially granted preliminary approval for the settlement on May 1, 2024, with final approval on August 8, 2024.
The settlement concludes a series of legal challenges for the Denver-based company, formerly known as XL Fleet Corp. before its name change in December 2020. Spruce Power, incorporated in Delaware and with a fiscal year-end of December 31, is listed on the New York Stock Exchange and operates under the standard industrial classification of electric services.
In other recent news, Spruce Power's Second Quarter 2024 Earnings Conference Call highlighted the company's steady financial performance, with Q2 revenue reported at $22.5 million and operating EBITDA at $14.4 million.
Despite increased operating expenditures and slower mergers and acquisitions activity, the company remains optimistic, citing growing electricity demand and the economic benefits of rooftop solar for homeowners.
Spruce Power's financial guidance for 2024 remains unaltered, even as CFO Sarah Wells noted a trend towards the lower end of the range. The company's strategic approach to growth and disciplined M&A activities were emphasized, with a focus on expanding market share through third-party ownership of rooftop solar systems.
The company also reported successful refinancing of its non-recourse debt and a Google (NASDAQ:GOOGL) customer satisfaction rating of 3.0. Spruce Power, which has $150 million in cash, is actively pursuing acquisitions and sees market opportunities, especially following a competitor's bankruptcy. These are among the latest developments for the company.
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