{"success":true,"data":{"pressRelease":{"id":"156833","rtpr_id":"nPn1TPPTsa-20260930","ticker":"SNFI","exchange":"OTC","all_tickers":["SNFI"],"title":"STARK NOVUS FINANCIAL PROVIDES UPDATE ON INSURANCE MATTERS","author":"PR Newswire","published_at":"2026-09-30T13:00:10.650Z","article_body":"STARK NOVUS FINANCIAL PROVIDES UPDATE ON INSURANCE MATTERS\nPR Newswire\n\nNEW YORK, Sept. 30, 2026\n\nNEW YORK, Sept. 30, 2026 /PRNewswire/ -- Stark Novus Financial Inc. (OTC:\nSNFI) (\"Stark Novus Financial\" or the \"Company\"), today provided an update on\ninsurance matters.\n\nOn September 22, 2026, the New York State intermediate appellate court issued\nan order denying the motion for reargument and leave to appeal filed by the\nprimary layer insurance company under the Company's D&O policy. The\nappellate court had previously entered summary judgment in the Company's favor\nas to the insurer's retroactive date exclusion defense. As a result, the\nretroactive date exclusion, which the insurer had relied upon to deny\ncoverage, should not apply as to certain claims as to which the Company has\nsought coverage. The specific claims to which the exclusion should not apply\nand the amount of expenses previously paid by the Company that would be\nreimbursable under the coverage remain to be determined. The Company,\nincluding its predecessor Lordstown Motors, has paid tens of millions of\ndollars defending against and responding to matters as to which insurance\ncoverage has been sought, most of which was paid in 2021-2023.\n\nBackground\n\nAs previously reported, the Company was notified in 2022 by its primary\ninsurer under its D&O insurance policy that the insurer is taking the\nposition that no coverage is available for various lawsuits, investigations\nand indemnification obligations under an exclusion to the policy entitled the\n\"retroactive date exclusion.\" Because of the denial of coverage, no insurance\nhas been made available to the Company to reimburse its expenses or cover\nlosses for these matters, which have been and could continue to be\nsignificant.\n\nThe Company filed an adversary proceeding in Bankruptcy Court on October 25,\n2024 seeking coverage, which was dismissed. While that proceeding was pending,\nthe insurer filed a lawsuit in New York State court seeking a declaration that\nthe insurer has no coverage for the lawsuits, investigations and\nindemnification obligations, under the insurer's primary layer policy. The\nCompany counterclaimed for a declaration that defense coverage is owed under\nthe policy for those matters. The parties each filed a motion for summary\njudgment, seeking a declaration in its' respective favor. On those cross\nmotions for summary judgment, the New York State court granted summary\njudgment in favor of the primary layer insurer and denied the Company's motion\nfor summary judgment. The Company appealed the decision to the intermediate\nappellate court, which reversed the lower court and found the policy provides\ncoverage for some of the claims in the matters at issue. The primary layer\ninsurer moved for reargument and leave to appeal to the New York Court of\nAppeals, the Company opposed the motion and, as noted, the court denied the\nmotion on September 22, 2026. The Company is focused on bringing the claim for\ncoverage to resolution.\n\nThe primary layer of coverage has a $5 million limit. There is excess coverage\nin the amount of at least $45 million for Side ABC coverage above the primary\nlayer. However, as noted above, the specific claims that the insurance may\ncover and the amounts that may be recoverable remain to be determined. In\naddition, a number of the matters for which coverage has been sought are still\nongoing. Additional details regarding the insurance and underlying litigation\nmatters are included in the quarterly and annual reports on Form 10-Q and Form\n10-K filed by the Company with the Securities and Exchange Commission.\n\nAbout Stark Novus Financial\n\nAdditional information about the Company is available on the Company's website\n(www.nurideinc.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786102-1&h=205692429&u=https%3A%2F%2Fwww.nurideinc.com%2F&a=www.nurideinc.com)\n) and in the Company's filings with the U.S. Securities and Exchange\nCommission, available at www.sec.gov/edgar\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786102-1&h=2894323167&u=http%3A%2F%2Fwww.sec.gov%2Fedgar&a=www.sec.gov%2Fedgar)\n.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nthe federal securities laws. You can identify these statements by our use of\nthe words \"believes,\" \"expects,\" \"intends,\" \"will,\" and similar expressions\nthat do not relate to historical matters. All statements other than statements\nof historical fact are forward-looking statements. You should exercise caution\nin interpreting and relying on forward-looking statements because they involve\nknown and unknown risks, uncertainties, and other factors, including risks\nregarding the timing and amount of any insurance recoveries, which could\nmaterially affect actual results, performance, or achievements. Other\nimportant risk factors that may affect the Company's business, results of\noperations and financial position are detailed from time to time in the\nCompany's filings with the Securities and Exchange Commission. The Company\ndoes not undertake any obligation to update or revise any forward-looking\nstatement, whether as a result of new information, future events, or\notherwise, except as may be required by applicable law.\n\nInvestor Contact\n\nPlease send inquiries to inquiries@nurideinc.com\n(mailto:inquiries@nurideinc.com) .\n\nView original\ncontent:https://www.prnewswire.com/news-releases/stark-novus-financial-provides-update-on-insurance-matters-302893628.html\n(https://www.prnewswire.com/news-releases/stark-novus-financial-provides-update-on-insurance-matters-302893628.html)\n\nSOURCE Stark Novus Financial Inc.\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn1TPPTsa-20260930","title":"STARK NOVUS FINANCIAL PROVIDES UPDATE ON INSURANCE MATTERS","author":"PR Newswire","ticker":"SNFI","created":"2026-09-30T13:00:10.650Z","tickers":["SNFI"],"exchange":"OTC","article_body":"STARK NOVUS FINANCIAL PROVIDES UPDATE ON INSURANCE MATTERS\nPR Newswire\n\nNEW YORK, Sept. 30, 2026\n\nNEW YORK, Sept. 30, 2026 /PRNewswire/ -- Stark Novus Financial Inc. (OTC:\nSNFI) (\"Stark Novus Financial\" or the \"Company\"), today provided an update on\ninsurance matters.\n\nOn September 22, 2026, the New York State intermediate appellate court issued\nan order denying the motion for reargument and leave to appeal filed by the\nprimary layer insurance company under the Company's D&O policy. The\nappellate court had previously entered summary judgment in the Company's favor\nas to the insurer's retroactive date exclusion defense. As a result, the\nretroactive date exclusion, which the insurer had relied upon to deny\ncoverage, should not apply as to certain claims as to which the Company has\nsought coverage. The specific claims to which the exclusion should not apply\nand the amount of expenses previously paid by the Company that would be\nreimbursable under the coverage remain to be determined. The Company,\nincluding its predecessor Lordstown Motors, has paid tens of millions of\ndollars defending against and responding to matters as to which insurance\ncoverage has been sought, most of which was paid in 2021-2023.\n\nBackground\n\nAs previously reported, the Company was notified in 2022 by its primary\ninsurer under its D&O insurance policy that the insurer is taking the\nposition that no coverage is available for various lawsuits, investigations\nand indemnification obligations under an exclusion to the policy entitled the\n\"retroactive date exclusion.\" Because of the denial of coverage, no insurance\nhas been made available to the Company to reimburse its expenses or cover\nlosses for these matters, which have been and could continue to be\nsignificant.\n\nThe Company filed an adversary proceeding in Bankruptcy Court on October 25,\n2024 seeking coverage, which was dismissed. While that proceeding was pending,\nthe insurer filed a lawsuit in New York State court seeking a declaration that\nthe insurer has no coverage for the lawsuits, investigations and\nindemnification obligations, under the insurer's primary layer policy. The\nCompany counterclaimed for a declaration that defense coverage is owed under\nthe policy for those matters. The parties each filed a motion for summary\njudgment, seeking a declaration in its' respective favor. On those cross\nmotions for summary judgment, the New York State court granted summary\njudgment in favor of the primary layer insurer and denied the Company's motion\nfor summary judgment. The Company appealed the decision to the intermediate\nappellate court, which reversed the lower court and found the policy provides\ncoverage for some of the claims in the matters at issue. The primary layer\ninsurer moved for reargument and leave to appeal to the New York Court of\nAppeals, the Company opposed the motion and, as noted, the court denied the\nmotion on September 22, 2026. The Company is focused on bringing the claim for\ncoverage to resolution.\n\nThe primary layer of coverage has a $5 million limit. There is excess coverage\nin the amount of at least $45 million for Side ABC coverage above the primary\nlayer. However, as noted above, the specific claims that the insurance may\ncover and the amounts that may be recoverable remain to be determined. In\naddition, a number of the matters for which coverage has been sought are still\nongoing. Additional details regarding the insurance and underlying litigation\nmatters are included in the quarterly and annual reports on Form 10-Q and Form\n10-K filed by the Company with the Securities and Exchange Commission.\n\nAbout Stark Novus Financial\n\nAdditional information about the Company is available on the Company's website\n(www.nurideinc.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786102-1&h=205692429&u=https%3A%2F%2Fwww.nurideinc.com%2F&a=www.nurideinc.com)\n) and in the Company's filings with the U.S. Securities and Exchange\nCommission, available at www.sec.gov/edgar\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4786102-1&h=2894323167&u=http%3A%2F%2Fwww.sec.gov%2Fedgar&a=www.sec.gov%2Fedgar)\n.\n\nForward-Looking Statements\n\nThis press release contains forward-looking statements within the meaning of\nthe federal securities laws. You can identify these statements by our use of\nthe words \"believes,\" \"expects,\" \"intends,\" \"will,\" and similar expressions\nthat do not relate to historical matters. All statements other than statements\nof historical fact are forward-looking statements. You should exercise caution\nin interpreting and relying on forward-looking statements because they involve\nknown and unknown risks, uncertainties, and other factors, including risks\nregarding the timing and amount of any insurance recoveries, which could\nmaterially affect actual results, performance, or achievements. Other\nimportant risk factors that may affect the Company's business, results of\noperations and financial position are detailed from time to time in the\nCompany's filings with the Securities and Exchange Commission. The Company\ndoes not undertake any obligation to update or revise any forward-looking\nstatement, whether as a result of new information, future events, or\notherwise, except as may be required by applicable law.\n\nInvestor Contact\n\nPlease send inquiries to inquiries@nurideinc.com\n(mailto:inquiries@nurideinc.com) .\n\nView original\ncontent:https://www.prnewswire.com/news-releases/stark-novus-financial-provides-update-on-insurance-matters-302893628.html\n(https://www.prnewswire.com/news-releases/stark-novus-financial-provides-update-on-insurance-matters-302893628.html)\n\nSOURCE Stark Novus Financial Inc.\n\n\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-09-30T13:00:10.706466342Z","server_sent_at_ms":1790773210706},"received_at":"2026-09-30T13:00:10.760Z","source_url":"https://www.prnewswire.com/news-releases/stark-novus-financial-provides-update-on-insurance-matters-302893628.html"},"analysis":{"id":"145510","press_release_id":"156833","analysis_json":{"industry":{"label":"Automobiles","sector":"Consumer Discretionary"},"redFlags":["Amount of recoverable insurance proceeds still undetermined","Several underlying matters for which coverage was sought remain ongoing","Earlier bankruptcy-court adversary proceeding seeking coverage was dismissed"],"eventType":"legal_litigation","narrative":"Stark Novus Financial won a key appellate ruling: on September 22, 2026, a New York intermediate appellate court denied the D&O insurer's motion for reargument and leave to appeal, leaving in place summary judgment rejecting the insurer's retroactive date exclusion defense.\n\nThe exclusion was the basis for the insurer's 2022 denial of coverage for lawsuits, investigations, and indemnification obligations that drove tens of millions of dollars in defense spending by the Company and predecessor Lordstown Motors.\n\nWhich claims are covered and how much of the prior spending is reimbursable remain to be determined; the primary layer carries a $5 million limit with at least $45 million in excess Side ABC coverage above it.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Insurer's appeal denied -- path to recovering tens of millions in D&O defense costs is now clearer."},"keyFigures":{"customDimensions":{"defense_costs_paid":"tens of millions of dollars (2021-2023)","primary_layer_limit":"$5 million","excess_side_abc_coverage":"at least $45 million"}},"quotedText":"the New York State intermediate appellate court issued an order denying the motion for reargument and leave to appeal filed by the primary layer insurance company under the Company's D&O policy","namedEntities":{"people":[],"products":[],"companies":[{"name":"Stark Novus Financial Inc.","ticker":"SNFI","relationship":"filer/insured"},{"name":"Lordstown Motors","relationship":"predecessor"}],"dollarAmounts":[{"amount":"$5 million","context":"primary layer D&O policy limit"},{"amount":"$45 million","context":"excess Side ABC coverage above the primary layer"},{"amount":"tens of millions of dollars","context":"defense expenses paid by the Company and predecessor"}]},"materialImpact":{"score":3,"reasoning":"Issuer-authored update: appellate court denied the D&O insurer's reargument/leave-to-appeal motion, cementing a win on the retroactive date exclusion that could unlock tens of millions in reimbursable defense costs. Recoverable amounts remain undetermined, capping the score below 4."},"tickerRelevance":{"others":[],"primary":"SNFI"},"globalImportance":32,"audienceRelevance":22,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"micro-cap OTC","eventGravity":"favorable appellate ruling on D&O coverage, no dollar amount fixed","issuerAuthored":true,"predecessorNotoriety":"Lordstown Motors bankruptcy legacy"}},"event_type":"legal_litigation","event_type_secondary":null,"sentiment":"bullish","material_impact_score":3,"narrative":"Stark Novus Financial won a key appellate ruling: on September 22, 2026, a New York intermediate appellate court denied the D&O insurer's motion for reargument and leave to appeal, leaving in place summary judgment rejecting the insurer's retroactive date exclusion defense.\n\nThe exclusion was the basis for the insurer's 2022 denial of coverage for lawsuits, investigations, and indemnification obligations that drove tens of millions of dollars in defense spending by the Company and predecessor Lordstown Motors.\n\nWhich claims are covered and how much of the prior spending is reimbursable remain to be determined; the primary layer carries a $5 million limit with at least $45 million in excess Side ABC coverage above it.","key_figures":{"customDimensions":{"defense_costs_paid":"tens of millions of dollars (2021-2023)","primary_layer_limit":"$5 million","excess_side_abc_coverage":"at least $45 million"}},"named_entities":{"people":[],"products":[],"companies":[{"name":"Stark Novus Financial Inc.","ticker":"SNFI","relationship":"filer/insured"},{"name":"Lordstown Motors","relationship":"predecessor"}],"dollarAmounts":[{"amount":"$5 million","context":"primary layer D&O policy limit"},{"amount":"$45 million","context":"excess Side ABC coverage above the primary layer"},{"amount":"tens of millions of dollars","context":"defense expenses paid by the Company and predecessor"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-30T13:00:30.400Z","global_importance":32,"audience_relevance":22,"importance_components":{"tickerTier":"micro-cap OTC","eventGravity":"favorable appellate ruling on D&O coverage, no dollar amount fixed","issuerAuthored":true,"predecessorNotoriety":"Lordstown Motors bankruptcy legacy"}},"durationMs":6832,"modelName":"glm-5.3-flashx"}}