Deadline Reminder: Howard G. Smith law firms are reminding investors of the impending deadline in the class action lawsuit against StoneCo Ltd. (STNE)


BENSALEM, Pennsylvania – (BUSINESS WIRE) – Howard G. Smith’s law firms remind investors of the upcoming January 18, 2022 Deadline for filing a lead plaintiff motion in the case filed on behalf of investors StoneCo Ltd. (“StoneCo” or the “Company”) (NASDAQ: STNE) Securities between March 11, 2021 and November 16, 2021, including (the “Class Period”).

Investors suffering losses on their StoneCo investments are advised to contact the Howard G. Smith law firms at 888-638-4847 or email [email protected] to determine their statutory rights in this class action lawsuit to discuss.

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-on-year decline in revenue “mainly 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 a Viceroy research Report dated October 27, 2021 indicated that Stone finds PAX “no longer” [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 testing our original again” [credit] short term loans between the fourth quarter of ’21 and the first quarter of ’22. The company has been unable to provide specific information on when loan volumes will 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 alleges that during the collection period the defendants made materially false and / or misleading statements and failed to disclose material adverse facts about the business, operations and prospects of the company. 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.

If you bought or otherwise acquired StoneCo securities during the class action period, you will be able to go to court no later than January 18, 2022 ask the court to appoint you as the lead plaintiff if you meet certain legal requirements. To become a member of the class action, you do not need to take any action at this point; You can hire a lawyer of your choice or you can take no action and remain an absent member of the class action. If you would like to learn more about this class action lawsuit, or have any questions about this announcement or your rights or interests in relation to these matters, please contact Howard G. Smith, Esquire, Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by phone at (215) 638-4847, toll free at (888) 638-4847, or by email at [email protected], or visit our website at www.howardsmithlaw.com.

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


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