This case was last updated from U.S. District Courts on 01/14/2022 at 20:08:32 (UTC).

Depue v. StoneCo Ltd. et al

Case Summary

On December 7, 2021, Landon Depue (“Plaintiff”), individually and on behalf of all others similarly situated, represented by Jeremy Alan Lieberman of Pomerantz LLP, filed a civil action against StoneCo, Thiago Dos Santos Piau (“Piau”), Lia Machado de Matos (“Matos”) and Marcelo Bastianello Baldin (“Baldin”) (Piau, Matos, Pereira and Baldin collectively, the “Individual Defendants”), seeking damages along with reasonable costs and other reliefs for the Defendants’ alleged wrongful acts. This case was filed in U.S. District Court in the Southern District of New York with Judge Alison J. Nathan presiding.

 

In the complaint, the Plaintiff alleged that, “StoneCo is a provider of financial technology solutions. StoneCo’s services allow merchants and other vendors to conduct electronic commerce across in-store, online, and mobile channels, primarily in Brazil. On August 30, 2021, after the market closed, StoneCo announced its second quarter 2021 financial results in a press release, reporting an 8.1% year-over-year decrease in revenue “mainly due to adjustments in credit fair value and significantly lower credit disbursements.” The Company stated that it had “implemented some prudent actions, like temporarily stopping the disbursement of credit and increasing coverage for potential future losses, which impacted [StoneCo’s] reported results for the quarter.””

 

The Plaintiff further alleged that, “On this news, the Company’s share price fell $2.96, to close at $46.54 per share on August 31, 2021, on unusually heavy trading volume. Then, on October 26, 2021, PAX Global Technology Ltd’s Florida offices were raided by the U.S. Federal Bureau of Investigation, the Department of Homeland Security, and several other agencies as part of a federal investigation. As a Viceroy Research report on October 27, 2021 pointed out, StoneCo states that PAX “is no longer [its] sole provider of POS services, [but the Company is] still substantially dependent on it to manufacture and assemble a substantial amount of [its] POS devices.” Moreover, another company replaced its PAX terminals “because it did not receive satisfactory answers from PAX regarding its POS devices connecting to websites not listed in their supplied documentation.””

 

The Plaintiff also alleged that, “On November 16, 2021, StoneCo announced that it would “start retesting our original [credit] product, which is short-term loans, between the fourth quarter of ’21 and the first quarter of ’22.” The Company could not provide specific guidance about when credit volumes would return to levels before StoneCo had halted origination of credit. On this news, the Company’s share price fell $10.96, or 34%, to close at $20.70 per share on November 17, 2021, thereby injuring investors further. Throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that StoneCo was experiencing difficulties in implementing its credit product; (2) that StoneCo faced significant risks via its point-of-sale vendor, PAX Global Technology Ltd.”

 

There are two claims for relief laid down by the Plaintiff. The first claim alleged deals with violation of Section 10(b) of The Exchange Act and Rule 10b-5 Promulgated Thereunder. The second claim alleged deals with violation of Section 20(a) of The Exchange Act.

 

In its prayer for relief, the Plaintiff has requested that the Court award compensatory damages in favor of the Plaintiff and the other Class members against all Defendants along with interest and award the Plaintiff and the Class their reasonable costs and expenses along with such other and further relief as the Court may deem just and proper.

 

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Case Details Parties Documents Dockets

 

Case Details

  • Case Number:

    1:21-CV-10468

  • Filing Date:

    12/07/2021

  • Case Status:

    Pending - Other Pending

  • Case Type:

    Finance - Security/Commodity/Exchange

Judge Details

Presiding Judge

Alison J. Nathan

 

Party Details

Plaintiff

Landon Depue

Defendants

StoneCo Ltd.

Thiago Dos Santos Piau

Lia Machado de Matos

Rafael Martins Pereira

Marcelo Bastianello Baldin

Attorney/Law Firm Details

Plaintiff Attorney

Jeremy Alan Lieberman

Attorney at Pomerantz LLP

600 Third Avenue, 20Th Floor

New York, NY 10016

Defendant Attorneys

Jacob J Waldman

Attorney at Quinn Emanuel Urquhart & Sullivan (NYC)

51 Madison Avenue

New York, NY 10010

Mario O. Gazzola

Attorney at Quinn Emanuel Urquhart & Sullivan, LLP

51 Madison Avenue, 22Nd Floor

New York, NY 10010

Michael Barry Carlinsky

Attorney at Quinn Emanuel

51 Madison Avenue, 22Nd Floor

New York, NY 10010

 

Court Documents

#1

(#1) COMPLAINT against Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd.. (Filing Fee $ 402.00, Receipt Number ANYSDC-25436525)Document filed by Landon Depue..(Lieberman, Jeremy) (Entered: 12/07/2021)

#2

(#2) CIVIL COVER SHEET filed..(Lieberman, Jeremy) (Entered: 12/07/2021)

#3

(#3) REQUEST FOR ISSUANCE OF SUMMONS as to StoneCo Ltd., Thiago Dos Santos Piau, Lia Machado De Matos, Rafael Martins Pereira, and Marcelo Bastianello Baldin, re: #1 Complaint. Document filed by Landon Depue..(Lieberman, Jeremy) (Entered: 12/07/2021)

#4

(#4) STATEMENT OF RELATEDNESS re: that this action be filed as related to 1:21-cv-09620-AJN-OTW. Document filed by Landon Depue..(Lieberman, Jeremy) (Entered: 12/07/2021)

#5

(#5) ELECTRONIC SUMMONS ISSUED as to Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd...(pc) (Entered: 12/08/2021)

#6

(#6) NOTICE OF APPEARANCE by Michael Barry Carlinsky on behalf of Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd...(Carlinsky, Michael) (Entered: 12/14/2021)

#7

(#7) NOTICE OF APPEARANCE by Jacob J Waldman on behalf of Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd...(Waldman, Jacob) (Entered: 12/14/2021)

#8

(#8) NOTICE OF APPEARANCE by Mario O. Gazzola on behalf of Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd...(Gazzola, Mario) (Entered: 12/14/2021)

 

Docket Entries

  • 12/28/2021
  • DocketMagistrate Judge Ona T. Wang is so designated. Pursuant to 28 U.S.C. Section 636(c) and Fed. R. Civ. P. 73(b)(1) parties are notified that they may consent to proceed before a United States Magistrate Judge. Parties who wish to consent may access the necessary form at the following link: #https://nysd.uscourts.gov/sites/default/files/2018-06/AO-3.pdf. (aea) (Entered: 12/28/2021)

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  • 12/28/2021
  • DocketNOTICE OF CASE REASSIGNMENT to Judge Alison J. Nathan. Judge Unassigned is no longer assigned to the case. (aea) (Entered: 12/28/2021)

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  • 12/28/2021
  • DocketCASE ACCEPTED AS RELATED. Create association to 1:21-cv-09620-AJN-OTW. Notice of Assignment to follow. (aea) (Entered: 12/28/2021)

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  • 12/14/2021
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  • Docket(#8) NOTICE OF APPEARANCE by Mario O. Gazzola on behalf of Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd...(Gazzola, Mario) (Entered: 12/14/2021)

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  • 12/14/2021
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  • Docket(#7) NOTICE OF APPEARANCE by Jacob J Waldman on behalf of Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd...(Waldman, Jacob) (Entered: 12/14/2021)

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  • 12/14/2021
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  • Docket(#6) NOTICE OF APPEARANCE by Michael Barry Carlinsky on behalf of Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd...(Carlinsky, Michael) (Entered: 12/14/2021)

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  • 12/08/2021
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  • Docket(#5) ELECTRONIC SUMMONS ISSUED as to Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd...(pc) (Entered: 12/08/2021)

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  • 12/08/2021
  • DocketCASE REFERRED TO Judge Alison J. Nathan as possibly related to 21cv9620. (pc) (Entered: 12/08/2021)

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  • 12/08/2021
  • DocketCase Designated ECF. (pc) (Entered: 12/08/2021)

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  • 12/08/2021
  • DocketCASE OPENING INITIAL ASSIGNMENT NOTICE: The above-entitled action is assigned to Judge Unassigned. .(pc) (Entered: 12/08/2021)

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  • 12/08/2021
  • Docket***NOTICE TO ATTORNEY REGARDING PARTY MODIFICATION. Notice to attorney Jeremy Alan Lieberman. The party information for the following party/parties has been modified: Landon Depue. The information for the party/parties has been modified for the following reason/reasons: party text was omitted;. (pc) (Entered: 12/08/2021)

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  • 12/07/2021
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  • Docket(#4) STATEMENT OF RELATEDNESS re: that this action be filed as related to 1:21-cv-09620-AJN-OTW. Document filed by Landon Depue..(Lieberman, Jeremy) (Entered: 12/07/2021)

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  • 12/07/2021
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  • Docket(#3) REQUEST FOR ISSUANCE OF SUMMONS as to StoneCo Ltd., Thiago Dos Santos Piau, Lia Machado De Matos, Rafael Martins Pereira, and Marcelo Bastianello Baldin, re: #1 Complaint. Document filed by Landon Depue..(Lieberman, Jeremy) (Entered: 12/07/2021)

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  • 12/07/2021
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  • Docket(#2) CIVIL COVER SHEET filed..(Lieberman, Jeremy) (Entered: 12/07/2021)

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  • 12/07/2021
  • View Court Documents
  • Docket(#1) COMPLAINT against Marcelo Bastianello Baldin, Thiago Dos Santos Piau, Lia Machado de Matos, Rafael Martins Pereira, StoneCo Ltd.. (Filing Fee $ 402.00, Receipt Number ANYSDC-25436525)Document filed by Landon Depue..(Lieberman, Jeremy) (Entered: 12/07/2021)

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