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SAN DIEGO, November 30, 2021--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP informs investors that a class action was filed on behalf of all persons and entities that purchased StoneCo Ltd. (NASDAQ: STNE) securities between March 11, 2021 and November 16, 2021. The complaint alleges violations of the Securities Exchange Act of 1934. StoneCo is a provider of financial technology solutions, which allow merchants and other vendors to conduct electronic commerce across in-store, online, and mobile channels, primarily in Brazil.
If you suffered a loss due to StoneCo Ltd.'s misconduct, click here.
StoneCo Ltd. (STNE) Misled Investors Regarding its Business Prospects
According to the complaint, during the class period, defendants made false or misleading statements and failed to disclose to investors that StoneCo was having trouble implementing its credit product, and faced significant risks via its point-of-sale vendor, PAX Global Technology Ltd, both of which would adversely impact its financial results.
On August 30, 2021, StoneCo announced its second quarter 2021 financial results, reporting an 8.1% year-over-year decrease in revenue and stating that it had "temporarily stopp[ed] the disbursement of credit and increas[ed] coverage for potential future losses, which impacted [StoneCo's] reported results for the quarter."
On October 26, 2021, the FBI, Department of Homeland Security, and other agencies raided PAX Global's offices. The next day, a Viceroy Research report pointed out, StoneCo states that PAX Global "is no longer [its] sole provider of POS services, [but the Company is] still substantially dependent on it to manufacture and assemble a substantial amount of [its] POS devices."
Then, on November 16, 2021, StoneCo announced it would "start retesting our original [credit] product, which is short-term loans, between the fourth quarter of '21 and the first quarter of '22." The Company could not provide specific guidance on when credit volumes would return to levels before StoneCo had halted origination of credit. On this news, shares of StoneCo fell $10.96, or 35%, to close at $20.70 per share on November 17, 2021.
If you purchased shares of StoneCo. Ltd. (STNE) securities between March 11, 2021 and November 16, 2021, you have until January 18, 2022, to ask the court to appoint you lead plaintiff for the class.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against StoneCo. Ltd. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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