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NEW YORK, Oct. 23, 2020 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against Vasta Platform Limited (“Vasta” or the “Company”) (NASDAQ: VSTA). The investigation focuses on whether Vasta and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On or around July 30, 2020, Vasta conducted its initial public offering (“IPO”), selling 18,575,492 of its Class A common shares priced at $19.00 per share. Then, on August 20, 2020, Vasta issued a press release announcing the Company’s financial results for the second quarter and first half of 2020. Among other results, Vasta announced a second-quarter net loss of 54.9 million reais and revenue of 120.23 million reais, representing a revenue decline of 12.9% from the year-ago quarter. Vasta also advised investors that adjusted earnings before interest, taxes, depreciation, and amortization (“EBITDA”), excluding non-recurring effects, was negative by 1.7 million reais in the second quarter, and that “[t]he different seasonality in revenue recognition seen in 2020 on account of a greater concentration of invoices at the start of the commercial cycle (4Q and 1Q) ended up having a negative impact on the basis of comparison against the same period last year.” The Company further advised that negative EBITDA of 10.9 million reais in the second quarter was “due to the extraordinary effects seen in the period, such as the different seasonality of revenue together with the impact of Covid-19 on the operation, as well as the inventory adjustment and higher marketing expenses.”
On this news, Vasta’s common share price fell $1.63 per share, or 8.81%, to close at $16.88 per share on August 21, 2020, representing an 11.16% decline from the IPO price.
If you purchased or otherwise acquired Vasta securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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