If you invested in PicS and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses »
CLASS PERIOD
Investors in PicS' Jan. 2026 IPO
LEAD PLAINTIFF DEADLINE
08/04/26
RELATED DOCUMENTS
Complaint (filed by separate counsel) 06/05/26
STOCK SYMBOL
NASDAQ: PICS
CONTACT
844-916-0895
[email protected]
PicS operates one of the largest digital banks in Brazil and offers various payment, credit, insurance products. Credit products represent one of PicS’ main growth drivers, accounting for about 52% of its total revenue by the company’s fourth quarter of 2025.
PicS’ credit evaluation and quality are of paramount importance to investors who provide the capital. In its IPO documents, PicS assured investors that “[w]e are able to leverage the user data that we collect from transactions within our ecosystem […] to offer credit to those consumers who meet our strict credit underwriting criteria.”
The litigation’s focus is on the propriety of PicS’ disclosures concerning the sufficiency of its credit evaluation procedures, allowance for expected credit losses (“ECL”), and classification of financial assets into Stage 1 (no significant increase in credit risk since recognition), Stage 2 (significant increase in credit risk subsequent to recognition) and Stage 3 (credit impaired).
The complaint alleges that, unknown to investors, PicS had evaluated its credit evaluation procedures before the IPO. During December 2025, PicS determined they were deficient and required enhancement.
In addition, the complaint alleges that PicS’ enhancement procedures resulted in the company reclassifying approximately R$590 million of exposures from Stage 2 to Stage 3 and resulted in an incremental ECL charge of R$88 million in the three months ended December 31, 2025.
Moreover, the complaint alleges PicS experienced a heightened and undisclosed Stage 3 formation rate showing new contracts entering default spiking from 3.8% in Q3 2025 to over 7% in Q4 2025. The metric substantially deviated from the results and trends disclosed in the IPO offering documents.
The truth entered the market through a series of partial disclosures. For example, on March 19, 2026 PicS filed its financial results for its Q4 and FY 2025, which both ended before the IPO. The company’s Stage 2 to Stage 3 reclassifications as well as its spike in defaulting Stage 3 loans were among the matters revealed in the filing.
Then, on June 2, 2026, PicS announced its Q1 2026 results revealing significant additional deterioration in credit quality and a massive 13% spike in Stage 3 loans.
FREQUENTLY ASKED QUESTIONS ABOUT THE CASE
- What is the PICS investigation about?
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We are focused on whether PicS’ IPO documents were negligently prepared for failing to disclose adverse facts about its credit evaluation processes.
WHAT SHOULD I DO?
- I worked at PICS. What should I do?
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If you were an employee of PICS, you may have valuable information that could be relevant to the investigation. Hagens Berman is one of the nation’s top whistleblower law firms, and has successfully represented many individuals who come forward with information regarding corporate malfeasance. Under the new SEC Whistleblower program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, contact Reed Kathrein at 844-916-0895 or [email protected].
- There are multiple law firms participating, do I need to contact all of them?
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No, you do not need to contact all participating law firms. Generally, class-action investigations and lawsuits are consolidated into a single case to streamline the legal process, and attorneys from only a few law firms are selected to serve in a leadership role on the consolidated case. Hagens Berman has a proven track record of being appointed to leadership roles in complex, multidistrict litigation regarding investor fraud and other consumer rights issues, and your claim will be handled by attorneys who have helped secure approximately $325 billion in class-action settlements on behalf of individuals who have suffered due to corporate malfeasance and the wrongdoing of other powerful institutions.
AM I ELIGIBLE?
- What is the threshold amount to be eligible? What are “substantial” losses?
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The threshold amount and the definition of "substantial" losses may vary depending on a number of factors specific to the case, including the size of the company, market cap, shares outstanding and who holds them and the damages alleged by the fraud. In general, to be eligible to participate in a class-action lawsuit, you must be able to demonstrate that you suffered financial losses as a result of the alleged wrongdoing and that your losses meet the criteria set by the court or law firm. Fill out the form and submit your losses.
CAN I PARTICIPATE?
- Am I affected? What do I need to do to participate?
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If you were an investor in PICS, you may be affected and eligible to participate in the case. To determine your eligibility and potential involvement, fill out the form and submit your losses.
- Can any PICS investor participate?
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In most class-action investigations and cases, any investor who meets the eligibility criteria, including purchasing the shares during the relevant period, can participate, regardless of the size of their investment. Fill out the form to find out your rights.
- I bought on a non-U.S. Exchange. Can I participate?
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No. This investigation only covers shares bought on a U.S. exchange, i.e. NASDAQ or NYSE. Fill out the form to find out your rights.
- Am I included if I still hold my shares, or do I need to sell to participate?
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Participation is based on purchasing shares during the relevant period, rather than your current holdings. Accordingly, you do not need to sell to participate. Fill out the form to find out your rights.
