Spartan DeSPAC $8 Million Settlement, What Shareholders Need to Know and How to Get Paid

Spartan Acquisition Corp. II’s sponsor, directors, and affiliated entities — including Apollo Global Management — have agreed to pay $8 million to settle a class action lawsuit that accused them of blocking shareholders from properly exercising their redemption rights before the company’s merger with Sunlight Financial Holdings. 

The lawsuit alleged that Spartan’s sponsor, directors, officers and related entities impaired 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. If you held Spartan Class A common stock on July 6, 2021 and did not redeem all of your shares, a payment may be coming to you automatically — no claim form required.

Quick Facts

• Case name: Timothy McCants et al. v. Geoffrey Strong et al.
• Defendants: Spartan Acquisition Sponsor II LLC, Apollo Global Management Inc., AP Spartan Energy Holdings II LP, and individual directors and officers
• Settlement amount: $8,000,000
• Who qualifies: Holders of Spartan Acquisition Corp. II Class A common stock as of 5:00 p.m. Eastern time on July 6, 2021, who did not redeem all of their shares before the merger deadline
• No claim form required: Payments are automatic based on share records
• Objection deadline: April 17, 2026
• Settlement hearing: May 1, 2026 at 11:00 a.m. in Wilmington, Delaware
• Official settlement website: spartandespacstockholdersettlement.com
• Settlement administrator: Epiq Systems Inc., 1-877-748-7038 | [email protected]

What Is a DeSPAC and Why Does It Matter Here?

Before getting into the settlement details, it helps to understand what this case is actually about — because the SPAC and deSPAC structure is what created the legal problem in the first place.

A SPAC — Special Purpose Acquisition Company — is a shell company that raises money through a public offering with the sole purpose of finding and merging with a private company. Once it identifies a target and gets shareholder approval to proceed, the merger is called a “deSPAC” transaction. Critically, shareholders in a SPAC have a specific legal right: they can redeem their shares for their original investment plus interest at any time before the merger closes, essentially getting their money back if they do not want to invest in the merged company.

That redemption right is one of the most fundamental protections SPAC investors have. The lawsuit alleged Spartan’s sponsor and related entities impaired stockholders’ redemption rights in connection with the merger with Sunlight Financial Holdings LLC. In plain terms, shareholders claim they were not given a fair chance to get their money back — and that the proxy materials distributed to help them make that decision were misleading or incomplete.

Sunlight Financial Holdings was a residential solar financing company. After the deSPAC merger closed in 2021, the company’s stock performance was poor and it eventually filed for bankruptcy in 2023 — meaning shareholders who did not redeem in time lost significant value. The lawsuit argues they were not given the information or opportunity they were legally entitled to before making that call.

Related article: Cambly $393,000 Settlement, Did You Tutor in California Between 2020 and 2022? Here Is What You Need to Know

Do You Qualify for a Payment?

You are a class member if all three of the following are true:

1. You held Spartan Acquisition Corp. II Class A common stock as of 5:00 p.m. Eastern time on July 6, 2021 — the redemption deadline tied to the Sunlight Financial merger vote.

2. You did not redeem all of your shares in connection with the business combination between Spartan and Sunlight Financial Holdings. If you redeemed every share you held before the deadline, you are excluded from this settlement.

3. You are a record or beneficial holder — meaning this covers both people who held shares directly in their own name and those who held through a brokerage account or other nominee.

Both individuals and entities can be class members. The class is certified solely for settlement purposes and is a non-opt-out class under Delaware Court of Chancery Rules, meaning class members cannot exclude themselves from the settlement.

This last point is important and unusual: you cannot opt out of this settlement. If you qualify, you are in — whether you want to be or not. The only action available to you if you disagree with the terms is to file a written objection.

How Much Will You Receive?

Your payment is calculated based on two factors: how many eligible shares you held as of the July 6, 2021 deadline, and how many total eligible shares all class members held combined. The total settlement fund is $8,000,000 and the amount each class member receives depends on the number of eligible shares held as of the redemption deadline relative to the total number of eligible shares all class members held.

After deductions for attorneys’ fees and administration costs, the remaining net fund will be divided proportionally. The more shares you held, the larger your payment. Exact per-share amounts will not be confirmed until after the May 1, 2026 court hearing and final approval.

Do You Need to Do Anything?

For most shareholders — no. 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. If a brokerage account held the class member’s eligible shares, the broker will deposit the settlement payment into the same account.

If you held shares through a broker like Fidelity, Schwab, or TD Ameritrade, the payment will go directly into that same account once the court grants final approval — you do not need to do anything.

If you held shares directly, make sure your contact details are current with the settlement administrator at 1-877-748-7038 or [email protected].

What If You Disagree With the Settlement?

Since you cannot opt out, your only recourse if you believe $8 million is insufficient — or that the settlement terms are unfair — is to file a formal written objection with the Delaware Court of Chancery.

Any objections must be filed with the Register in Chancery in the Court of Chancery of the State of Delaware and delivered to both Plaintiffs’ Counsel and Defendants’ Counsel no later than April 17, 2026.

The settlement hearing on May 1, 2026 at 11:00 a.m. in Wilmington, Delaware will determine final certification of the class, adequacy of representation, fairness and reasonableness of the proposed settlement, and allocation plans and fee distributions. If you want to appear and voice concerns in person, that hearing is your opportunity.

Full instructions for filing an objection are available at the official settlement website: spartandespacstockholdersettlement.com.

When Will Payments Go Out?

The settlement administrator will issue payments after the court resolves any appeals and grants final approval of the settlement. The hearing is May 1, 2026. Assuming no appeals delay things, payments could realistically be distributed in the second half of 2026.

If you have questions about your specific shares or payment status, contact the settlement administrator directly:

• Phone: 1-877-748-7038
• Email: [email protected]
• Website: spartandespacstockholdersettlement.com

Key Terms Explained

SPAC (Special Purpose Acquisition Company): A shell company that raises public money specifically to find and merge with a private company, taking it public without the traditional IPO process.

DeSPAC Transaction: The actual merger between a SPAC and its target company. Shareholders have the right to redeem their shares before this merger closes.

Redemption Right: A SPAC shareholder’s right to cash out their shares at the original offering price plus interest before a merger is completed. This case alleges that right was impaired.

Non-Opt-Out Class: A class action where members cannot exclude themselves. You are automatically bound by the settlement and its outcome regardless of whether you agree with the terms.

Plan of Allocation: The court-approved formula that determines how settlement funds are divided among class members — in this case, based on the number of eligible shares held.

Securities settlement payments like this one are generally taxable as investment income. For a clear breakdown of how the IRS treats class action settlement proceeds and what you may owe, read our guide on are lawsuit settlements taxable. And if you held other stocks affected by alleged corporate fraud or misleading disclosures, our breakdown of the Catalent $78M securities settlement covers another open securities case with a May 2026 deadline that may apply to your portfolio.

This article is for informational purposes only and does not constitute legal advice. For questions about your eligibility or payment, contact the settlement administrator at 1-877-748-7038 or visit spartandespacstockholdersettlement.com.

Sources: Timothy McCants et al. v. Geoffrey Strong et al., Delaware Court of Chancery | Official settlement website: spartandespacstockholdersettlement.com | Levi & Korsinsky settlement notice, March 2026 | Epiq Systems settlement administration records

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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