The complaint, filed by the law firm Glancy Prongay Wolke & Rotter LLP, centers on claims that PicS misled investors during its IPO process. According to the court filings, the company allegedly failed to disclose that its internal procedures were deficient, necessitating a reclassification of approximately R$590 million in exposures from Stage 2 to Stage 3. This shift resulted in an incremental charge of R$88 million for the quarter ending December 31, 2025.

Furthermore, the lawsuit contends that PicS experienced a Stage 3 formation rate exceeding 7% in the final quarter of 2025, a figure that deviated sharply from historical trends presented in the offering documents. Plaintiffs argue these documents overstated the accuracy of the company’s credit models and failed to acknowledge the risks associated with entering higher-risk business lines. By allegedly suppressing data regarding deteriorating credit quality and rising default rates, the company’s leadership provided a distorted view of its financial health to the market.