Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Southern District of New York on behalf of shareholders of StoneCo Ltd. who purchased shares between March 11, 2021 and November 16, 2021.
StoneCo and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On August 30, 2021, post-market closed, the Company disclosed that it had “implemented some prudent actions, like temporarily stopping the disbursement of credit and increasing coverage for potential future losses, which impacted [StoneCo’s] reported results for the quarter.” Then, on November 16, 2021, the Company disclosed that it would “start retesting our original [credit] product, which is short-term loans, between the fourth quarter of ’21 and the first quarter of ’22,” but did not provide specific guidance regarding when credit volumes would return to levels before StoneCo had halted origination of credit.
On this news, shares of StoneCo’s fell $10.96, or 34%, to close at $20.70 per share on November 17, 2021.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until January 18, 2022 to request that the court appoint them lead plaintiff.