The law firm of Kirby Mcinerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired XP Inc. (“XP” or the “Company”) (NASDAQ: XP) securities pursuant and/or traceable to the Company’s December 2019 Initial Public Offering (“IPO”). Investors have until May 20, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) XP engaged in undisclosed related party transactions; (ii) XP failed to disclose its common and large system failures and connected losses; (iii) XP’s aggressive Independent Financial Agent strategy was and is tenuous; (iv) XP had material weaknesses; and (v) XP fired its previous accounting firm due to that firm finding and disclosing material weaknesses in
the Company’s export control practices that were in violation of applicable laws and regulations.
In December 2019, Defendants held the IPO, offering approximately 83 million Class A common shares to the investing public at $27.00 per share.
On March 6, 2020, The Winkler Group released a report detailing how XP had misled investors and failed to disclose pertinent information generally and in its Registration Statement, including: (i) undisclosed related party transactions; (ii) R$100M in system failure expenses; (iii) great uncertainty with regards to its IFAs; (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 fell $9.12 over two trading days, or 25.5%, to close at $26.64 on March 9, 2020.
If you acquired XP securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.