San Diego, CA -- (SBWIRE) -- 12/09/2021 -- An investor, who purchased shares of StoneCo Ltd. (NASDAQ: STNE), filed a lawsuit in the U.S. over alleged violations of Federal Securities Laws by StoneCo Ltd.

Investors who purchased shares of StoneCo Ltd. (NASDAQ: STNE) have certain options and for certain investors are short and strict deadlines running. Deadline: January 18, 2022. NASDAQ: STNE investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

Cayman Islands based StoneCo Ltd. provides financial technology solutions to merchants and integrated partners to conduct electronic commerce across in-store, online, and mobile channels in Brazil. On August 30, 2021, after the market closed, StoneCo Ltd. announced its second quarter 2021 financial results, reporting an 8.1% year-over-year decrease in revenue "mainly due to adjustments in credit fair value and significantly lower credit disbursements." Further stating, the "credit business remains in the early stages and we made some mistakes in our execution, especially not foreseeing how the malfunctioning of the registry system could harm our business. So we decided to take a cautious approach and implemented some prudent actions, like temporarily stopping the disbursement of credit and increasing coverage for potential future losses, which impacted our reported results for the quarter." Likewise, StoneCo thinks it could take three to six months before it can resume operations as normal.

Then, on October 26, 2021, PAX Global Technology Ltd's 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. As a Viceroy Research report on October 27, 2021 pointed out, Stone states that PAX "is no longer [its] sole provider of POS 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."

Then, on November 16, 2021, StoneCo Ltd. announced 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." The Company could not provide specific guidance about when credit volumes would return to levels before StoneCo had halted origination of credit.

Shares of StoneCo Ltd. (NASDAQ: STNE) declined from $53.96 per share on August 25, 2021, to $14.02 per share on December 6, 2021.

According to the complaint the plaintiff alleges on behalf of purchasers of StoneCo Ltd. (NASDAQ: STNE) common shares between March 11, 2021 and November 16, 2021, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 11, 2021 and November 16, 2021, the Defendants failed to disclose to investors that StoneCo was experiencing difficulties in implementing its credit product, that StoneCo faced significant risks via its point-of-sale vendor, PAX Global Technology Ltd., that, as a result of the foregoing, the Company's financial results would be adversely impacted, and that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

Those who purchased shares of StoneCo Ltd. (NASDAQ: STNE) have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Michael Daniels
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.