Time-Sensitive: Allegations Focus on Undisclosed Stage 3 Formation Rate Spike That Nearly Doubled Before PicS N.V.’s $434.3 Million IPO

NEW YORK, June 24, 2026 /PRNewswire/ — Levi & Korsinsky, LLP alerts investors in PicS N.V. (Nasdaq: PICS) of a pending securities class action. Class Period: January 30, 2026 through June 4, 2026. Check if you can recover your investment losses or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com | (212) 363-7500.

Investors who purchased shares in or traceable to the Company’s January 30, 2026 IPO at $19.00 per share have seen those shares fall below $9.00, a loss exceeding $10.00 per share (over 52%). The Court has set August 4, 2026 as the deadline to apply for lead plaintiff appointment.

The Alleged Stage 3 Formation Rate Concealment

The lawsuit asserts that PicS marketed its IPO on the strength of a stable credit portfolio, presenting investors with a Stage 3 formation rate of 3.6% as of September 30, 2025. This metric, which measures the rate at which loans deteriorate into default status, was prominently featured in the Offering Documents as evidence of sound credit management. What the Offering Documents did not reveal, the action claims, was that the Company’s Stage 3 formation rate had already spiked to 7.1% in the fourth quarter of 2025, a 97% increase over the prior quarter, before a single IPO share changed hands.

Regulation S-K Compliance Failures in the Fintech Credit Sector

As alleged, SEC Regulation S-K Item 303 required the Company to disclose known trends or uncertainties reasonably expected to have a material impact on revenues. Item 105 required disclosure of the most significant factors making the IPO speculative or risky. The complaint contends that a near-doubling of the default formation rate in the quarter immediately preceding the IPO constituted precisely the type of known adverse trend that federal securities regulations mandate be disclosed to prospective purchasers.

• The Stage 3 formation rate allegedly jumped from 3.6% (Q3 2025) to 7.1% (Q4 2025), yet the Offering Documents presented only the lower historical figure
• R$590 million in credit exposures were reclassified from Stage 2 (underperforming) to Stage 3 (defaulted) during Q4 2025, prior to the IPO
• An R$88 million incremental expected credit loss charge resulted from the reclassification
• Management acknowledged post-IPO that “historical credit evaluation policies and procedures were deficient”
• The Company’s proprietary AI and machine learning models, touted in the Offering Documents as delivering “up to 3.0 times more accuracy,” failed to prevent the credit deterioration

Why Formation Rate Adequacy Allegedly Matters to Investors

The formation rate is not an abstract accounting metric. As pleaded, it is the single most important early-warning indicator of a credit portfolio’s health, capturing loan deterioration before losses fully materialize in NPL ratios. By presenting a 3.6% rate while allegedly knowing the rate had nearly doubled, the Offering Documents deprived investors of the ability to assess the true risk of the Company’s credit-heavy business model, where credit products generated 52% of total revenue by Q4 2025.

“Investors deserve transparency about material risks that could affect their investments. When a company’s key credit quality metric nearly doubles in the quarter before an IPO, that is information the market needs to price securities accurately.” — Joseph E. Levi, Esq.

Speak with an attorney about recovering damages or call (212) 363-7500.

WHY LEVI & KORSINSKY — Ranked in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years, Levi & Korsinsky, LLP is a nationally recognized leader in shareholder rights litigation. With a team of over 70 professionals, the firm has recovered hundreds of millions of dollars for investors.

Frequently Asked Questions About the PICS Lawsuit

Q: Who is eligible to join the PICS investor lawsuit? A: Investors who purchased PICS stock or securities between January 30, 2026 and June 4, 2026, or in and traceable to the Company’s January 30, 2026 IPO, and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: How much did PICS stock drop? A: Shares fell over 52%, a decline of more than $10.00 per share from the $19.00 IPO price, after the Company disclosed that its credit evaluation procedures were deficient and its Stage 3 formation rate had spiked. Investors who purchased shares at the IPO price may be entitled to compensation.

Q: What specific misstatements does the PICS lawsuit allege? A: The complaint alleges PicS made materially false or misleading statements regarding the quality of its credit underwriting, the accuracy of its proprietary AI models, and the stability of its loan portfolio, while concealing a near-doubling of its Stage 3 formation rate and a R$590 million loan reclassification that occurred before the IPO.

Q: What do PICS investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as a class member.

Q: What if I already sold my PICS shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period or in the IPO and sold at a loss may still participate.

Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.

Q: What if I missed the lead plaintiff deadline? A: The deadline applies only to investors seeking lead plaintiff appointment. Class members who miss it can still participate in any settlement or recovery.

CONTACT:

Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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