Bronstein, Gewirtz & Grossman, LLC Notifies Shareholders of StoneCo. Ltd. (STNE) Investigation
NEW YORK, NY / ACCESSWIRE / November 16, 2021 / Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of StoneCo. Ltd. ("StoneCo." or the "Company") (NASDAQ:STNE). Investors who purchased StoneCo. sharesare encouraged to obtain additional information and assist the investigation by visiting the firm's site: www.bgandg.com/stne.
The investigation concerns whether StoneCo. and certain of its officers and/or directors have violated federal securities laws and breached fiduciary duties.
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
If you are aware of any facts relating to this investigation or purchased StoneCo. shares, you can assist this investigation by visiting the firm's site: www.bgandg.com/stne. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Nathanson
212-697-6484 | info@bgandg.com
SORUCE: Bronstein, Gewirtz & Grossman, LLC
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