STONECO LTD SHAREHOLDER ALERT: Robbins LLP Reminds Investors of Class Action Against StoneCo Ltd. (STNE) – Lawyer Monthly
SAN DIEGOâ ââ(BUSINESS WIRE) –$ STNE #group recourse– Law firm in shareholder law Robbins LLP informs investors that a class action lawsuit has been filed on behalf of all persons and entities who have purchased securities of StoneCo Ltd. (NASDAQ: STNE) 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 enable traders and other sellers to conduct electronic commerce across in-store, online and mobile channels, primarily in Brazil.
If you have suffered a loss as a result of StoneCo Ltd.’s misconduct, click here.
StoneCo Ltd. (STNE) misled investors about its business outlook
According to the complaint, during the period of the action, the defendants made false or misleading statements and did not disclose to investors that StoneCo had difficulty implementing its credit product and faced significant risks via its point of sale provider, PAX Global Technology Ltd, which would have a negative impact on its financial results.
On August 30, 2021, StoneCo announced its financial results for the second quarter of 2021, reporting an 8.1% drop in revenue year-over-year and stating that it had “temporarily stopped[ed] the disbursement of credit and the increase[ed] cover for potential future losses, which had an impact [StoneCoâs] released the results for the quarter.
On October 26, 2021, the FBI, Department of Homeland Security, and other agencies raided the PAX Global offices. The next day, according to a Viceroy Research report, StoneCo states that PAX Global “is no longer [its] single point of sale service provider, [but the Company is] still heavily dependent on it to manufacture and assemble a substantial amount of [its] Point of sale devices.
Then, on November 16, 2021, StoneCo announced that it would “begin to retest our [credit] product, which are short-term loans, between the fourth quarter of ’21 and the first quarter of ’22. The Company was unable to provide specific indications as to when credit volumes would return to levels before StoneCo halted the credit origination. At this news, StoneCo shares fell $ 10.96, or 35%, to close at $ 20.70 per share on November 17, 2021.
If you bought StoneCo shares. Ltd. (STNE) between March 11, 2021 and November 16, 2021, you have until January 18, 2022, to ask the court to appoint you as leader of the group.
All representation is based on contingency fees. Shareholders pay no fees or expenses.
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About Robbins LLP: A recognized leader in shareholder rights litigation, Robbins LLP attorneys and staff are dedicated to helping shareholders recover their losses, improve corporate governance structures, and hold top executives. company responsible for their wrongdoing since 2002. To be notified in the event of a class action lawsuit against StoneCo. Ltd. rule or to receive free alerts when company executives commit wrongdoing, subscribe to Stock watch today.
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