Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed against StoneCo Ltd.
NEW YORK, 22 November 2021 / PRNewswire / – Bernstein Liebhard, a nationally recognized investor rights law firm, announces that a securities class action lawsuit has been filed on behalf of investors who have purchased or acquired the securities of StoneCo Ltd. (“StoneCo”) (NASDAQ: STNE) between January 11, 2021 and November 16, 2021, included (the âRecourse Periodâ). The lawsuit was filed in United States District Court of the Southern District of new York and alleges violations of the Securities Exchange Act of 1934.
If you StoneCo securities purchased or otherwise acquired, and / or would like to discuss your legal rights and options, please visit Stoneco Ltd Shareholder Class Action or contact Joe seidman free of charge at (877) 779-1414 Where [emailÂ protected].
StoneCo is a provider of financial technology solutions. StoneCo’s services enable merchants and other sellers to conduct e-commerce through in-store, online and mobile channels, primarily in Brazil.
According to the complaint, the defendants made materially false and / or misleading statements, and failed to disclose material adverse facts regarding the business, operations and prospects of the company. Specifically, the Defendants failed to disclose to investors that: (1) StoneCo was having difficulty implementing its credit product; (2) StoneCo has faced significant risks through its point of sale provider, PAX Global Technology Ltd. ; and (3) as a result of the above, the financial results of the Company would be adversely affected.
At August 30, 2021, after the market closed, StoneCo announced its second quarter 2021 financial results in a press release, reporting an 8.1% decline in year-over-year revenue “primarily due to Significantly lower fair value credit adjustments and credit disbursements â. The company said it had “implemented prudent measures, such as temporarily halting credit disbursement and increasing coverage of potential future losses, which had an impact on [StoneCo’s] released the results for the quarter. “
As a result of these disclosures, the Company’s share price fell $ 2.96 close at $ 46.54 per share on August 31, 2021, on an unusually high volume of transactions.
Then on October 26, 2021, PAX Global Technology Ltd Florida The offices were raided by the United States Federal Bureau of Investigation, the Department of Homeland Security and several other agencies as part of a federal investigation. Like a Viceroy Research report on October 27, 2021 underlined, StoneCo declares that PAX “is no longer [its] single point of sale service provider, [but the Company is] still largely dependent on it to manufacture and assemble a substantial amount of [its] Point of sale devices. “Additionally, another company replaced its PAX terminals” because it did not receive satisfactory responses from PAX regarding its point of sale devices connecting to websites not listed in the documentation provided. “
Following this news, the Company’s share price fell $ 2.64, or 7%, to close at $ 33.81 per share on October 27, 2021, further hurting investors.
Finally, on November 16, 2021, StoneCo announced that it “will begin to retest our [credit] product, which are short-term loans, between the fourth quarter of 21 and the first quarter of 22. “
Following this news, the Company’s share price fell $ 10.96, or 34%, to close at $ 20.70 per share on November 17, 2021, which further harms investors.
If you wish to act as the principal applicant, you must apply to the Court at the latest January 18, 2022. A principal plaintiff is a representative party acting on behalf of the other members of the class to direct the litigation. Your ability to participate in any recovery does not require you to serve as the principal applicant. If you choose not to take any action, you can remain an absent group member.
If you StoneCo securities purchased or otherwise acquired, and / or would like to discuss your legal rights and options please visit https://www.bernlieb.com/cases/stonecoltd-stne-shareholder-lawsuit-class-action-fraud-stock-461/ or contact Joe seidman free of charge at (877) 779-1414 Where [emailÂ protected].
Since 1993, Bernstein Liebhard LLP has collected more than $ 3.5 billion for its customers. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and take legal action on their behalf. Due to its success in litigating hundreds of lawsuits and class actions, the firm has been named thirteen times on the National Law Journal’s Plaintiff List and listed in The Legal 500 for ten consecutive years.
LAWYER ADVERTISING. Â© 2021 Bernstein Liebhard LLP. The law firm responsible for this announcement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. The lawyer responsible for this announcement in the State of Connecticut is Michael S. Bigin. Past results do not guarantee or predict a similar result with respect to any future matter.
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SOURCE Bernstein Liebhard LLP