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Investor Notice: Robbins LLP Informs Investors of the PicS N.V. Class Action

businesswire.com
PICS The article details a class action lawsuit against PicS N.V. alleging that the company misled investors regarding its credit evaluation procedures and financial health in its IPO. Subsequent disclosures revealed significant reclassifications of credit exposures, increased expected credit losses, and a deteriorating credit quality, leading to a more than 50% drop in stock price.

Investor Notice: Robbins LLP Informs Investors of the PicS N.V. Class Action SAN DIEGO--( BUSINESS WIRE)-- Robbins LLP informs stockholders that a class action was filed on behalf of all investors who purchased or otherwise acquired PicS N.V. (NASDAQ: PICS) securities pursuant and/or traceable to the Registration Statement and Prospectus issued in connection with the Company's January 30, 2026 initial public offering ("IPO"). PicS operates one of the largest digital banks in Brazil. The Company offers various payment, credit, insurance, and investment products across both financial and non-financial services.

Robbins LLP is Investigating Allegations that PicS N.V. (PICS) Misled Investors in Connection with its IPO

For more information, submit a form, email attorney Aaron Dumas, Jr., or give us a call at (800) 350-6003.

The Allegations: Robbins LLP is Investigating Allegations that PicS N.V. (PICS) Misled Investors in Connection with its IPO.

According to the complaint, during the IPO, defendants failed to disclose that: (1) PicS had conducted an evaluation of its credit evaluation procedures in December 2025 and determined that those procedures were deficient and required enhancement; (2) as a result of the new procedures implemented in December 2025, the Company had reclassified approximately R$590 million of exposures previously classified as Stage 2 to Stage 3, resulting in an incremental expected credit loss ("ECL") charge of R$88 million during the fourth quarter of 2025; (3) PicS had experienced an elevated but undisclosed Stage 3 formation rate of more than 7% during the fourth quarter of 2025, significantly exceeding historical trends; (4) the Company had materially overstated the quality and effectiveness of its credit models, underwriting practices, and customer data in identifying and managing credit risk; and (5) PicS was experiencing deteriorating customer credit quality, heightened default risk, and increasing loan impairments associated with its expansion into riskier lending products, resulting in adverse financial and operational trends that predated the IPO and were expected to continue worsening.

Plaintiff further alleges that on March 19, 2026, less than three months after the IPO, PicS disclosed its fourth quarter and full-year 2025 financial results, revealing that it had reclassified approximately R$590 million of credit portfolio balances from Stage 2 to Stage 3, which increased ECL provisions by R$88 million. The Company also reported that its Stage 3 formation rate had risen to 7.1% during the fourth quarter of 2025, representing a 97% increase from the prior quarter. Further, PicS disclosed that it had implemented significant changes to its credit-loss methodologies in December 2025, including enhanced risk models, renegotiation tracking, and stricter policies governing the classification of non-performing exposures. On June 2, 2026, the Company further disclosed that Stage 3 loans had increased to 13% of its total credit portfolio and that delinquent loans continued to rise. On this news, PicS Class A common stock fell to less than $9.00 per share by June 4, 2026, representing a decline of more than 50% from the $19.00 per share IPO price.

What Now: You may be eligible to participate in the class action against PicS N.V. Shareholders who wish to serve as lead plaintiff for the class should contact Robbins LLP. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member. For more information, click here.

All representation is on a contingency fee basis. Shareholders pay no fees or expenses.

About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002.

To be notified if a class action against PicS N.V. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.

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