Investors Face Losses as PicS N.V. Faces Securities Class Action

The lawsuit claims that PicS and its top executives provided misleading information in IPO documents. According to the allegations, an internal review conducted in December 2025—just weeks before the company went public—identified urgent deficiencies in credit evaluation procedures. These findings, which were allegedly omitted from public disclosures, obscured a sharp rise in non-performing loans and increased default risks.

The market impact of these revelations proved severe. When the company disclosed its 2025 financial results on March 19, 2026, revealing R$590 million in reclassified loans, the stock price dropped 22.5% in a single day. By June 2, 2026, shares had collapsed more than 50% from the original $19.00 IPO price, falling below $9.00 as Stage 3 loans reached 13% of the total portfolio.

Reed Kathrein, the Hagens Berman partner leading the investigation, stated that the firm is scrutinizing whether PicS misled investors by touting its AI-driven underwriting models as a competitive edge while suppressing evidence of portfolio degradation. Investors who acquired Class A common stock in the IPO have until August 4, 2026, to apply for lead plaintiff status in the ongoing litigation.