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ALERT StoneCo Ltd. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit - STNE

Robbins Geller Rudman & Dowd LLP announces that purchasers of StoneCo Ltd. (NASDAQ: STNE) securities between March 11, 2021 and November 16, 2021, inclusive (the “Class Period”) have until January 18, 2022 to seek appointment in Ray v. StoneCo Ltd., No. 21-cv-09620 (S.D.N.Y.). Commenced on November 19, 2021, the StoneCo class action lawsuit charges StoneCo along with certain of its top executives with violations of the Securities Exchange Act of 1934.

If you wish to serve as lead plaintiff of the StoneCo class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the StoneCo class action lawsuit must be filed with the court no later than January 18, 2022.

CASE ALLEGATIONS: StoneCo is a provider of financial technology solutions that allows merchants and other vendors to conduct electronic commerce across in-store, online, and mobile channels, primarily in Brazil.

The StoneCo class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) StoneCo was experiencing difficulties in implementing its credit product; (ii) StoneCo faced significant risks via its point-of-sale vendor, PAX Global Technology Ltd.; (iii) as a result, StoneCo’s financial results would be adversely impacted; and (iv) consequently, defendants’ positive statements about StoneCo’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On August 30, 2021, StoneCo reported an 8.1% year-over-year decrease in revenue “mainly due to adjustments in credit fair value and significantly lower credit disbursements.” StoneCo further reported that it had “implemented some prudent actions, like temporarily stopping the disbursement of credit and increasing coverage for potential future losses, which impacted [StoneCo’s] reported results for the quarter.” On this news, StoneCo’s share price fell.

Then, on October 26, 2021, PAX Global Technology Ltd.’s Florida offices were raided by the U.S. Federal Bureau of Investigation, the Department of Homeland Security, and several other agencies as part of a federal investigation. As a Viceroy Research report on October 27, 2021 pointed out, StoneCo states that PAX “is no longer [its] sole provider of POS services, [but StoneCo is] still substantially dependent on it to manufacture and assemble a substantial amount of [its] POS devices.” Moreover, another company replaced its PAX terminals “because it did not receive satisfactory answers from PAX regarding its POS devices connecting to websites not listed in their supplied documentation.” On this news, StoneCo’s share price fell an additional 7%.

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Diskussion: StoneCo - Fintech aus Brasilien


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Nachrichtenquelle: Business Wire (engl.)
20.11.2021, 02:15  |  160   |   |   

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ALERT StoneCo Ltd. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit - STNE Robbins Geller Rudman & Dowd LLP announces that purchasers of StoneCo Ltd. (NASDAQ: STNE) securities between March 11, 2021 and November 16, 2021, inclusive (the “Class Period”) have until January 18, 2022 to seek appointment in Ray v. StoneCo Ltd., …

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