NEW YORK, May 20, 2020 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in XP Inc. ("XP" or the "Company") (NASDAQ:XP) of the May 20, 2020 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in XP stock or options pursuant and/or traceable to the Company's December 2019 IPO and would like to discuss your legal rights, click here: www.faruqilaw.com/XP. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected]
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Attn: Richard Gonnello, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
The lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of all those who purchased XP securities pursuant and/or traceable to the Company's registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with XP's December 2019 initial public offering (the "IPO" or "Offering"). The case, Acerno v. Benchimol et al., No. 1:20-cv-01502 was filed on March 21, 2020.
The lawsuit focuses on whether the Company's Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) XP engaged in undisclosed related party transactions; (2) XP failed to disclose its common and large system failures and connected losses; (3) XP's aggressive Independent Financial Agent strategy was and is tenuous; (4) XP had material weaknesses; (5) XP fired its previous accounting firm due that firm finding and disclosing material weaknesses; and (6) as a result, defendants' statements about XP's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On March 6, 2020, The Winkler Group released a report (the "Report") detailing, among other things, how XP had misled investors and failed to disclose pertinent information generally and in its Registration Statement, including: (1) undisclosed related party transactions; (2) R$100M in system failure expenses; (3) great uncertainty with regards to its Independent Financial Agents; (iv) the full circumstances regarding its firing and replacing its accounting firm KPMG for PwC; and (v) other undisclosed material weaknesses.
On this news, XP shares plummeted $9.12 per share over the rest of the trading day and the next full trading day, or 25.50%, to close at $26.64 per share on March 9, 2020, damaging investors.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding XP's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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