The litigation, FirstFire Global Opportunities Fund, LLC v. PicS N.V., centers on claims that the company’s IPO documents obscured significant internal warnings about its lending practices. According to the complaint, PicS had identified deficiencies in its credit evaluation procedures as early as December 2025. This internal review reportedly led to the reclassification of approximately R$590 million in exposures and an incremental Expected Credit Loss charge of R$88 million for the final quarter of 2025.

Plaintiffs allege the company failed to disclose a 7% formation rate for high-risk Stage 3 loans during that same period—a figure that deviated sharply from historical trends. The lawsuit further contends that the IPO materials overstated the efficacy of the firm's data models, masking internal projections of worsening default rates. Since the offering, PicS shares have plummeted from their $19 IPO price to below $9, a decline exceeding 50%. The law firm Kessler Topaz Meltzer & Check, LLP is currently advising affected investors on potential recovery options ahead of the August deadline.