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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
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Press release content from Globe Newswire. The AP news staff was not involved in its creation.

STONECO ALERT: Bragar Eagel & Squire, P.C. is Investigating StoneCo Ltd. on Behalf of StoneCo Stockholders and Encourages Investors to Contact the Firm

November 18, 2021 GMT

NEW YORK, Nov. 17, 2021 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, is investigating potential claims against StoneCo Ltd. (“StoneCo” or the “Company”) (NASDAQ: STNE) on behalf of StoneCo stockholders. Our investigation concerns whether StoneCo has violated the federal securities laws and/or engaged in other unlawful business practices.

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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, the Company’s share price declined by $2.96 per share, or approximately 6%, from $49.50 per share to close at $46.54 per share on August 31, 2021.

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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 devices, [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, the Company’s share price declined by $2.64 per share, or approximately 7.24%, from $36.45 per share to close at $33.81 per share on October 27, 2021.

If you purchased or otherwise acquired StoneCo shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Alexandra Raymond by email at investigations@bespc.com, telephone at (212) 355-4648, or by filling out this contact form.  There is no cost or obligation to you.

Contact Information:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Alexandra B. Raymond, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com