The lawsuit, filed by Hagens Berman, alleges that PicS and its top executives circulated materially misleading documents during the IPO process. Court filings suggest that an internal review conducted in December 2025 revealed significant deficiencies in credit evaluation procedures, yet these findings were omitted from public disclosures. According to the complaint, these undisclosed issues masked a rapid deterioration in customer credit quality and an increase in default risks.

The market reacted sharply to subsequent disclosures. On March 19, 2026, PicS reported R$590 million in Stage 3 loan reclassifications, causing shares to drop 22.5% in a single session. By June, as default rates on the firm's loan portfolio reached 13%, the stock price had collapsed by more than 50% from its initial $19.00 offering price.

Reed Kathrein, the Hagens Berman partner leading the investigation, stated that the firm is examining whether PicS misled shareholders by touting its AI-driven underwriting models as a competitive advantage while ignoring internal data that indicated portfolio degradation. Affected investors are encouraged to contact the firm before the August 4 deadline to discuss potential legal representation.