DEADLINE APPROACHING: StoneCo Ltd. Investors with Substantial Losses Have Opportunity to Lead Class Action Lawsuit

SAN DIEGO, December 4, 2021 / PRNewswire / – Robbins Geller Rudman & Dowd LLP announces that StoneCo Ltd. (NASDAQ: STNE) securities between March 11, 2021 and November 16, 2021, both dates inclusive (the “class period”) have up to January 18, 2022 to apply for appointment to Ray v. StoneCo Ltd., No. 21-cv-09620 (SDNY). Started on November 19, 2021, the StoneCo class action lawsuit accuses StoneCo and some of its top executives of violating the Securities Exchange Act of 1934.

If you would like to act as the lead plaintiff in the StoneCo class action, please complete your information by clicking here. You can also contact Attorney JC Sanchez of Robbins Geller by phone at 800 / 449-4900 or by email at [email protected]. Motions by the lead plaintiffs for the StoneCo class action must be submitted to the court by no later than. be submitted January 18, 2022.

CASE NEED: StoneCo is a provider of financial technology solutions that enable merchants and other providers to conduct e-commerce through in-store, online and mobile channels, primarily in Brazil.

The StoneCo class action alleges that during the collection period, defendants made false and misleading information and failed to disclose: (i) StoneCo had difficulty executing its loan product; (ii) StoneCo has been exposed to significant risks through its point of sale provider, PAX Global Technology Ltd.; (iii) it would adversely affect StoneCo’s financial results; and (iv) as a result, Defendants’ positive statements about StoneCo’s business, operations and prospects were materially misleading and / or unfounded.

on August 30, 2021, StoneCo reported an 8.1% year-over-year decline in sales “primarily due to adjustments to the fair value of loans and significantly lower loan disbursements”. StoneCo further reported that it had “taken some prudent steps, such as temporarily suspending loan disbursements and increasing coverage for potential future losses that may affect the company [StoneCo’s] Quarterly results released. “As a result of the news, StoneCo’s share price fell.

The story goes on

Then, on October 26, 2021, PAX Global Technology Ltd.’s Florida Offices were raided as part of a federal investigation by the US Department of Investigations, the Department of Homeland Security, and several other agencies. As a Viceroy research report about October 27, 2021 pointed out that StoneCo determines that PAX “no longer” [its] sole provider of POS services, [but StoneCo is] still heavily dependent on a considerable amount of. manufacture and assemble [its] POS devices. “In addition, another company replaced its PAX terminals” because it did not receive satisfactory responses from PAX regarding its POS devices that connect to websites not listed in the documentation provided. “Because of this news StoneCo’s share price fell another 7%.

Finally on November 16, 2021, StoneCo announced that it would “start retesting our original”. [credit] Short-term loan product between the fourth quarter of ’21 and the first quarter of ’22. “StoneCo was unable to provide specific information on when loan volumes would return to pre-lending levels. On this news, StoneCo’s share price fell another 34%, which continued to hurt investors.

LEAD APPLICATION: The Private Securities Litigation Reform Act of 1995 allows any investor who has purchased StoneCo securities during the class action period to seek appointment as the lead plaintiff in the StoneCo class action. A lead plaintiff is generally the applicant with the greatest financial interest in the legal protection sought by the alleged class, which is also typical and appropriate for the alleged class. A lead plaintiff is acting on behalf of all of the other group members in directing the StoneCo class action lawsuit. The lead plaintiff can choose a law firm of their choice to bring the StoneCo class action lawsuit. An investor’s ability to participate in a possible future recovery of the StoneCo class action lawsuit does not depend on whether they are the lead plaintiff.

ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 attorneys in 9 offices across the country, Robbins Geller Rudman & Dowd LLP is the largest US law firm serving investors in securities class actions. Robbins Geller attorneys have accomplished many of the largest shareholder reclaims in history, including the largest stock class recovery reclaim of all time – $ 7.2 billion – in In re Enron Corp. Sec. Lit. ISS Securities Class Action Services 2020 Top 50 report ranked Robbins Geller # 1 in recovery $ 1.6 billion for investors in the past year, more than double the amount recovered from all other securities plaintiffs. More information is available at http://www.rgrdlaw.com.

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Contact:

Robbins Geller Rudman & Dowd LLP
655 W. Broadway, San Diego, CA 92101
JC Sanchez, 800-449-4900
[email protected]

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SOURCE Robbins Geller Rudman & Dowd LLP

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