LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz reminds investors of the upcoming May 20, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who acquired XP Inc. (“XP” or the “Company”) (NASDAQ: XP) securities pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s December 2019 initial public offering (the "IPO" or "Offering").
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In December 2019, XP completed its initial public offering (“IPO”), issuing approximately 83 million Class A shares at $27.00 per share.
On March 6, 2020, The Winkler Group published a report raising serious questions about the accuracy of XP’s financials. Among other claims, the report alleged that XP failed to disclose relevant information, including: (i) undisclosed related party transactions; (ii) R$100 million in system failure expenses; (iii) great uncertainty regarding its independent financial agents (“IFAs”); (iv) the full circumstances regarding its firing and replacing its accounting firm; and (v) other undisclosed material weaknesses.
On this news, the Company’s share price fell $9.12, or over 25%, over two consecutive trading sessions to close at $26.64 per share on March 9, 2020, thereby injuring investors.
The complaint alleges that the Registration Statement contained false and/or misleading statements and/or failed to disclose: (1) that XP engaged in undisclosed related party transactions; (2) that XP failed to disclose its common and large system failures and connected losses; (3) that XP’s aggressive IFA strategy was and is tenuous; (4) that XP had material weaknesses; (5) that XP fired its previous accounting firm due to that firm finding and disclosing material weaknesses; and (6) that as a result, Defendants’ public statements were materially false and misleading at all relevant times.
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If you purchased or otherwise acquired XP securities during the Class Period, you may move the Court no later than May 20, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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