STNE CLASS ACTION NOTICE: Glancy Prongay & Murray LLP Files Securities Fraud Lawsuit Against StoneCo Ltd.

THE ANGEL–(BUSINESS WIRE) – Glancy Prongay & Murray LLP (“GPM”) announces a class action lawsuit named Ray v. StoneCo Ltd., et al., Filed (Case 21-cv-9620) on behalf of the individuals and companies that StoneCo Ltd. (“StoneCo” or the “Company”) (NASDAQ: STNE) between March 11, 2021 and November 16, 2021 inclusive (the “Class Period”). Plaintiff is pursuing claims under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the “Exchange Act”).

Investors are hereby notified that they have 60 days from this notification to appoint the court as the lead plaintiff in this lawsuit.

If you have suffered a loss on your StoneCo investment or would like to inquire about whether you would like to make claims under U.S. securities laws to recover your loss, you can find your contact information at www.glancylaw.com/cases/stoneco- ltd / transmit. You can also contact Charles H. Linehan of GPM at 310-201-9150, toll free at 888-773-9224, email [email protected], or visit our website at www.glancylaw.com to learn more about your rights.

On August 30, 2021, after the market closed, StoneCo announced its financial results for the second quarter of 2021 in a press release, reporting an 8.1% year-over-year decline in revenue “primarily due to adjustments to the fair value of loans and significantly lower loan disbursements”. . “The company said it had” taken some prudent measures such as temporarily suspending loan disbursements and increasing coverage for potential future losses, which had an impact on ” [StoneCo’s] published results for the quarter. ”

As a result of this news, the company’s share price fell $ 2.96 due to unusually high trading volume, and closed at $ 46.54 per share on August 31, 2021.

Then, on October 26, 2021, the PAX Global Technology Ltd Florida offices were raided as part of a federal investigation by the US Federal Bureau of Investigation, the Department of Homeland Security, and several other agencies. As noted in a report by Viceroy Research dated Oct. 27, 2021, Stone states that PAX is “no more.” [its] sole provider of POS services, [but the Company 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 supplied ”.

As a result of 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.

Then, on November 16, 2021, StoneCo announced that it would “start retesting our original.” [credit] short term loans between the fourth quarter of ’21 and the first quarter of ’22. The company was unable to provide specific information on when credit volumes would return to levels before StoneCo stopped lending.

As a result of this news, the company’s share price fell $ 10.96, or 34%, to close at $ 20.70 per share on November 17, 2021, further hurting investors.

The complaint filed in this class action lawsuit alleges that during the collection period the defendants made materially false and / or misleading statements and failed to disclose material adverse facts about the company’s business, operations and prospects. In particular, Defendants failed to disclose to investors: (1) that StoneCo had difficulty executing its loan product; (2) StoneCo has been exposed to significant risk through its point of sale provider, PAX Global Technology Ltd.; (3) that the company’s financial results would be adversely affected as a result of the foregoing; and (4) that, based on the foregoing, Defendants’ positive statements about the business, operations, and prospects of the Company were materially misleading and / or improperly based.

Follow us for updates on LinkedIn, Twitter or Facebook.

If you purchased or otherwise acquired StoneCo securities during the Class Action Period, you may request the court to appoint you as the lead plaintiff no later than 60 days after such notice. You don’t need to do anything at this point to be a member of the class; You can hire a lawyer of your choice or do nothing and remain an absent member of the group. If you would like to learn more about this promotion, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, toll free at 888-773-9224, email at [email protected], or visit our website at www.glancylaw.com. For inquiries by e-mail, please include your postal address, telephone number and the number of shares purchased.

This news release may be viewed as a solicitation in some jurisdictions subject to applicable laws and ethical rules.

Comments are closed.