NEW YORK, Dec. 2, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of StoneCo. Ltd. ("StoneCo." or the "Company") (NASDAQ:STNE). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether StoneCo. and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On August 30, 2021, after the market closed, Stone announced its second quarter 2021 financial results in a press release, reporting an 8.1% year-over-year decrease in revenue "mainly due to adjustments in credit fair value and significantly lower credit disbursements." The Company stated that it had "implemented some prudent actions, like temporarily stopping the disbursement of credit and increasing coverage for potential future losses, which impacted [Stone's] reported results for the quarter."
On this news, Stone's stock price fell $2.96 per share, or 6%, to close at $46.54 per share on August 31, 2021, damaging investors.
Then, on October 26, 2021, PAX Global Technology Ltd's ("PAX") Florida offices were raided by the U.S. Federal Bureau of Investigation, the Department of Homeland Security, and several other agencies as part of a federal investigation. According to an October 27, 2021 report by market analyst Viceroy Research, Stone states that PAX "is no longer [its] sole provider of POS [point of sale] services, [but the Company is] still substantially dependent on it to manufacture and assemble a substantial amount of [its] POS devices." Moreover, another company replaced its PAX terminals "because it did not receive satisfactory answers from PAX regarding its POS devices connecting to websites not listed in their supplied documentation."
On this news, Stone's stock price fell $2.64 per share, or 7%, to close at $33.81 per share on October 27, 2021
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP