The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of shareholders who purchased or otherwise acquired PicS N.V. (“PicS” or the “Company”) (NASDAQ: PICS) Class A common stock pursuant and/or traceable to the Company’s  January 2026 initial public offering (“IPO”). PicS investors have until August 4, 2026 to file a lead plaintiff motion.

What Happened?

On or around January 30, 2026, PicS conducted its IPO, selling approximately 22.9 million shares of Class A common stock at $19 per share.

On March 19, 2026, PicS released its fourth quarter and full year 2025 financial results and revealed that, as part of the Company’s “annual review of expected credit loss parameters,” it had made several “enhancements” to its Expected Credit Loss (“ECL”) calculations, and “implemented a stricter policy to accelerate the classification of renegotiated non-performing exposures from Stage 2 to Stage 3.”

As a result, “R$590 million of Stage 2 portfolio balances were reclassified to Stage 3, resulting in an ECL increase of R$88 [$17.56 million USD].” Stage 3 is the Company’s highest risk category for its credit portfolio.

On this news, PicS’s stock price fell $3.56, or 22.5%, to close at $12.27 per share on March 19, 2026, thereby injuring investors.

At the time of filing, PicS’s stock price had fallen to a low of less than $9 per share, representing a more than 50% decline from the $19 per share IPO price.

What Is The Lawsuit About?

The complaint filed in this class action alleges that the Offering Documents contained materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that PicS had conducted an evaluation of its credit evaluation procedures in December 2025 and determined that such procedures were deficient and in need of enhancement; (2) that, as a result of the new procedures the Company had implemented in December 2025, PicS had reclassified approximately R$590 million of exposures previously classified as Stage 2 to Stage 3, leading to an incremental ECL charge of R$88 million in the three months ended December 31, 2025; (3) that PicS had experienced a heightened, but unreported, Stage 3 formation rate of more than 7% in the fourth quarter of 2025 that deviated substantially from the historical results and trends provided in the Offering Documents; (4) that the Offering Documents had materially overstated the quality and ability of the Company’s credit models and user data to inform the Company’s underwriting practices and to allow PicS to timely and effectively monitor, assess, and identify adverse credit events, credit risks, and credit deterioration across its portfolio; (5) that PicS suffered from degradations in customer credit quality and heightened risks of default and loan impairment as a result of its entrance into materially riskier business lines leading up to the IPO, resulting in undisclosed adverse financial and operational trends such as heightened incidents of default, which predated the IPO and were internally projected by PicS to continue to worsen following the IPO; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.