The complaint, filed in the Southern District of New York as FirstFire Global Opportunities Fund, LLC v. PicS N.V., claims that the firm’s IPO documents failed to disclose critical deficiencies in its credit risk assessment. According to the lawsuit, PicS N.V. identified internal flaws in its evaluation procedures in December 2025, which forced the 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 final quarter of 2025.

Beyond these accounting adjustments, the suit alleges that PicS N.V. concealed a spike in Stage 3 default formations that exceeded 7% in late 2025—a trend that sharply diverged from the data presented to investors during the $434.3 million IPO. By June 4, 2026, the company’s share price had cratered to less than $9, marking a loss of more than 50% from its $19 offering price. The legal action seeks to hold the company’s executives, directors, and underwriters accountable for these undisclosed financial risks.