The lawsuit, spearheaded by the law firm Hagens Berman, contends that PicS N.V. and its top executives issued materially misleading statements in their IPO documents. According to the complaint, an internal review conducted in December 2025 revealed that the company's credit evaluation policies were fundamentally flawed. These findings, which were allegedly withheld from shareholders, masked a sharp rise in non-performing loans and a deterioration of customer credit quality.
The market reaction to subsequent disclosures has been severe. Following an announcement on March 19, 2026, regarding R$590 million in loan reclassifications, the company’s share price plummeted 22.5% in a single day. By June 2, 2026, as the company revealed that Stage 3 loans had reached 13% of its portfolio, the stock price had collapsed by more than 50% from its initial $19.00 offering price.
Reed Kathrein, the partner leading the investigation, stated that the firm is scrutinizing whether PicS misled investors by promoting its AI-driven underwriting models as a competitive advantage while failing to disclose internal data showing portfolio degradation. Affected investors are encouraged to contact Hagens Berman to discuss their legal standing before the August deadline.
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