By Brazil Stock Guide – StoneCo (STNE) has proposed paying $26.7 million to settle a U.S. class action alleging misleading statements about its credit portfolio between 2020 and 2021, according to UOL — a news portal controlled by the same group as PagSeguro, one of Stone’s main competitors. The agreement was filed in a New York federal court and awaits approval.
The case covers investors who bought Stone shares on Nasdaq from May 27, 2020 to Nov. 16, 2021. Eligible shareholders could receive about $0.12 per share before fees, with a court hearing set for Feb. 27.
Plaintiffs claim Stone blamed rising defaults on the pandemic and regulation, while the real issue was looser credit underwriting. The company denied wrongdoing but opted for settlement. Stone shares closed at $17.82, about 80% below their February 2021 peak of $92.34. The company posted a net loss of R$ 1.3 billion in 2021, versus a profit of R$ 837.4 million in 2020.
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