The lawsuit, filed by Levi & Korsinsky, LLP, alleges that PicS marketed its $434.3 million IPO by citing a stable 3.6% Stage 3 formation rate—a key metric for tracking loan deterioration. However, the complaint contends that the company failed to disclose that this rate had already climbed to 7.1% by the fourth quarter of 2025. This 97% increase, involving the reclassification of R$590 million in credit exposures, allegedly occurred before a single share was sold to the public.

Legal representatives argue that this omission violated SEC Regulation S-K, which mandates the disclosure of known trends that could materially impact financial health. By omitting the spike, the firm allegedly misled investors about the efficacy of its proprietary AI credit models and the overall stability of its loan portfolio. With shares dropping from their 19.00 IPO price to below 9.00, the court has set an August 4, 2026, deadline for investors to apply for lead plaintiff status in the recovery effort.