The lawsuit, spearheaded by the firm SueWallSt, claims that PicS misled shareholders by touting an asset-light lending model while simultaneously shifting toward riskier balance-sheet credit origination. According to the complaint, a December 2025 internal review revealed that the company’s credit evaluation procedures were deficient, a finding that allegedly remained undisclosed during the $434.3 million IPO. This shift resulted in the reclassification of R$590 million in exposures from underperforming to credit-impaired, triggering an R$88 million expected credit loss charge.

Since its January debut at $19.00 per share, PicS stock has plunged more than 52%, trading below $9.00. The legal action contends that the company’s proprietary AI and machine learning models failed to manage the rapid expansion of credit products, which accounted for 52% of total revenue by the fourth quarter of 2025. With Stage 3 loans reaching 13% of the portfolio by early 2026, investors now have until August 4, 2026, to seek lead plaintiff status in the ongoing proceedings.