Hagens Berman Investigates PicS IPO Over Alleged Credit Disclosures

The class action complaint alleges that PicS withheld internal findings from December 2025, which indicated that its credit evaluation systems were insufficient. According to the filing, these undisclosed internal assessments led to the reclassification of approximately R$590 million in financial assets from Stage 2 to Stage 3, resulting in an incremental expected credit loss charge of R$88 million for the quarter ending December 31, 2025.

Beyond these reclassifications, the suit points to a sharp rise in default rates, with new contracts entering Stage 3 status climbing from 3.8% in the third quarter of 2025 to over 7% by the end of the year. These figures stood in stark contrast to the trends presented in the company's IPO documentation. Following the public disclosure of these metrics in March and June 2026, the company reported further deterioration in credit quality, including a 13% spike in Stage 3 loans. Reed Kathrein, the Hagens Berman partner heading the probe, stated that the investigation aims to determine if the IPO documents were negligently prepared by omitting these adverse facts regarding the company's risk management processes. Investors seeking to participate in the action must meet a deadline of August 4, 2026.