XP Inc. (NASDAQ: XP) Investor Files Securities Class Action Lawsuit 03/21/2020

If you purchased shares of XP Inc. (NASDAQ: XP), you have certain options and for certain investors are short and strict deadlines running. Deadline: May 20, 2020. NASDAQ: XP investors should contact the Shareholders Foundation, Inc.

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Company Name(s): 
Case Name: 
XP Shareholder Class Action Lawsuit 03/21/2020
Case Status: 
Lawsuit Filed
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 

An investor in shares of XP Inc. (NASDAQ: XP) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by XP Inc. in connection with certain allegedly false and misleading statements made in connection with XP's December 2019 initial public stock offering (the "IPO").

Brazilian based XP Inc. operates technology-driven financial services platform that provides financial products and services in Brazil. XP Inc. reported that its annual Total Revenue rose from over $1.28 billion in 2017 to over $2.05 billion in 2018, and that its Net Income increased from $423.54 million in 2017 to $465.33 million in 2018.

XP Inc. conducted its initial public offering (“IPO”) in December 2019 and sold over 72 million shares at $27.00 per share.

On March 6, 2020, less than three months after XP’s IPO, a report was published raising questions regarding the accuracy of XP’s financial statements after having discovered accounting irregularities, inadequate financial disclosures, and discrepancies between the company’s IPO prospectus and internal audits. In addition, The report raises questions regarding XP’s asset values, revenue recognition, and tax deductions, and documents a pattern of regulatory noncompliance and questionable executive judgement.

According to the complaint the plaintiff alleges on behalf of investors who purchased securities of XP Inc. (NASDAQ: XP) pursuant and/or traceable to the registration statement and related prospectus (collectively, the "Registration Statement") issued in connection with XP's December 2019 initial public stock offering, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the Registration Statement featured false and/or misleading statements and/or failed to disclose that: (1) XP engaged in undisclosed related party transactions; (2) XP failed to disclose its common and large system failures and connected losses; (3) XP's aggressive Independent Financial Agent strategy was and is tenuous; (4) XP had material weaknesses; (5) XP fired its previous accounting firm due that firm finding and disclosing material weaknesses; and (6) as a result, defendants' statements about XP's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.