SAN DIEGO & SAO PAULO--(BUSINESS WIRE)--Shareholder rights law firm Robbins LLP reminds investors that a purchaser of XP, Inc. (NASDAQ: XP) filed a class action complaint against the Company for alleged violations of the Securities Act of 1933 pursuant to the company's December 2019 initial public offering ("IPO"). XP operates technology-driven financial services platform that provides financial products and services in Brazil.
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XP, Inc. (XP) Accused of Misleading Shareholders
According to the complaint, XP held its IPO on December 13, 2019, offering approximately 83 million shares at $27.00 per share for net proceeds of approximately $1,100 million. In its Registration Statement, XP continuously touted its technological prowess, advancement and position, stating in relevant part "[XP's] technology is a significant competitive advantage for XP… that enables [it] to differentiate XP in the market." Then, on March 6, 2020, The Winkler Group released a report stating that XP had misled investors and failed to disclose pertinent information in its Registration Statement, including: (i) undisclosed related party transactions; (ii) $100M in system failure expenses; (iii) great uncertainty with regard to its independent financial agents; and (iv) the full circumstances regarding its firing and replacing its accounting firm KPMG for PwC, as well as other undisclosed material weaknesses. On this news, XP's share price fell $9.12, or almost 26%, to close at $26.64 per share on March 9, 2020.
XP, Inc. (XP) Shareholders Have Legal Options
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