Spruce Power Holding Reported Settlement Agreement; Co To Pay $19.5M To Settlement Fund For All Claims Asserted In Class Action Litigation

-8-K

On December 6, 2023, the lead plaintiff and the defendants entered into a Stipulation and Agreement of Settlement (the “Settlement Agreement”) toresolve the Class Action Litigation. On January 18, 2024, the Court preliminarily approved the proposed settlement as being fair, reasonable, andadequate, and scheduled a telephonic hearing for April 30, 2024 at 10:00 a.m. Eastern Time, to, among other things, consider whether to approve theproposed settlement. Under the terms of the Settlement Agreement, the Company will pay an aggregate of $19.5 million to a settlement fund to settle all claims asserted in theClass Action Litigation, class counsel’s fees, and the costs of administering the settlement.  The Settlement Agreement establishes procedures for thenotification of claimants and the administration of the settlement.  The settlement fund will be used to pay notice and administrative fees relating to theClass Action Litigation and to compensate those individuals who were class members during the applicable class period; no amount of the settlementfund will revert to the Company. The settlement fund will be managed by a neutral third-party claims administrator, which will be authorized tocommunicate with class members and make payments from the fund in accordance with the terms of the Settlement Agreement. The Company’s D&Oliability insurers have agreed to and are expected to directly fund approximately $4 million of the settlement fund. The Company will directly fund theremaining approximately $15.5 million. As communicated on November 9, 2023, in conjunction with third quarter 2023 earnings results, the Companyaccrued for the underlying settlement amount as of September 30, 2023