The lawsuit, titled FirstFire Global Opportunities Fund, LLC v. PicS N.V., alleges that the company’s IPO offering documents contained misleading statements regarding the bank's credit evaluation procedures. According to the complaint, PicS N.V. failed to disclose significant deficiencies in its risk modeling discovered in December 2025. Specifically, the filing claims the bank reclassified approximately R$590 million of loan exposures from Stage 2 to Stage 3, triggering an R$88 million charge that was not adequately reflected in the IPO disclosures.

The litigation further asserts that the bank experienced a 7% formation rate for high-risk Stage 3 loans in late 2025—a figure that deviated sharply from trends presented to public investors. By June 4, 2026, the company's stock price had plummeted to less than $9 per share, marking a decline of more than 50% from the initial $19 offering price. The Robbins Geller Rudman & Dowd LLP firm, which is representing the class, notes that under the Private Securities Litigation Reform Act of 1995, the investor with the largest financial interest is typically appointed to lead the proceedings.