SAN DIEGO – (COMMERCIAL THREAD) –Robbins Geller Rudman & Dowd LLP announces that buyers of securities of StoneCo Ltd. (NASDAQ: STNE) between March 11, 2021 and November 16, 2021 inclusive (the “Recourse Period”) have until January 18, 2022 to request a nomination in Ray v. StoneCo Ltd., No. 21-cv-09620 (SDNY). Started November 19, 2021, StoneCo The class action lawsuit accuses StoneCo and some of its senior executives of violations of the Securities Exchange Act of 1934.
If you wish to serve as the principal applicant of the StoneCo class action lawsuit, please provide your information by clicking here. You can also contact Robbins Geller’s lawyer JC Sanchez by calling 800 / 449-4900 or emailing [email protected] Principal applicant’s requests for StoneCo The class action must be filed with the court no later than January 18, 2022.
CASE ALLEGATIONS: StoneCo is a financial technology solutions provider that enables merchants and other sellers to conduct e-commerce across in-store, online and mobile channels, primarily in Brazil.
The StoneCo The Class Action alleges that, throughout the Class Period, the Defendants made false and misleading representations and failed to disclose that: (i) StoneCo was having difficulty implementing its credit product; (ii) StoneCo faced significant risks through its point of sale provider, PAX Global Technology Ltd. ; (iii) as a result, StoneCo’s financial results would be adversely affected; and (iv) therefore, the defendants’ positive statements about StoneCo’s business, operations and prospects were materially misleading and / or lacking reasonable basis.
On August 30, 2021, StoneCo reported an 8.1% year-over-year decline in revenue “primarily due to fair value credit adjustments and significantly lower credit disbursements.” StoneCo further indicated that 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. At this news, StoneCo’s share price fell.
Then, on October 26, 2021, the offices of PAX Global Technology Ltd. in Florida 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. As a Viceroy Research report from October 27, 2021 noted, StoneCo states that PAX “is no longer [its] single point of sale service provider, [but StoneCo is] still heavily dependent on it to manufacture and assemble a substantial amount of [its] Point of sale devices. In addition, another company replaced their PAX terminals “because they did not receive satisfactory responses from PAX regarding their point-of-sale terminals connecting to websites not listed in the documentation provided”. Following this news, StoneCo’s share price fell a further 7%.
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. StoneCo was unable to provide precise indications as to when credit volumes would return to levels before StoneCo halted the credit origination. Following this news, StoneCo’s share price fell another 34%, further penalizing investors.
THE MAIN COMPLAINANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who purchased StoneCo securities during the Recourse Period to seek appointment as principal plaintiff in the StoneCo class action lawsuit. A principal plaintiff is generally the plaintiff with the greatest financial interest in the remedy sought by the putative class which is also typical and adequate of the putative class. A lead applicant acts on behalf of all other class members by ordering StoneCo class action lawsuit. The lead plaintiff can choose a law firm of their choice to argue the case. StoneCo class action lawsuit. The ability of an investor to participate in any potential future recovery of the StoneCo to classify legal action does not depend on serving as the principal plaintiff.
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