The litigation, initiated by the firm Kahn Swick & Foti, LLC, alleges that PicS and its executives failed to disclose critical information within the company's offering documents. The complaint claims the firm misrepresented the effectiveness of its credit models and underwriting capabilities while masking deteriorating credit quality prior to the IPO.

According to the suit, internal assessments conducted in December 2025 revealed significant deficiencies in credit evaluation. This led to the reclassification of approximately R$590 million in exposures and an incremental credit loss charge of R$88 million for the fourth quarter. Furthermore, the company allegedly experienced a Stage 3 formation rate exceeding 7%, a trend that deviated sharply from disclosures provided to investors at the time of the offering. Those seeking to participate in the recovery process can reach out to managing partner Lewis Kahn for further information regarding the case, FirstFire Global Opportunities Fund, LLC v. PicS N.V.