StoneCo ($STNE) Settlement Moves Forward With Preliminary Court Approval

Saw an update on an older case involving StoneCo and figured I’d pass it along. The company has reached a settlement with $STNE investors, and the court has now given it preliminary approval. The settlement amount is about 26.75M dollars.

This whole thing goes back to 2020–2021, when StoneCo was pushing into Brazil’s credit business. At the time, they were talking up the growth potential, but later disclosures showed they were running into big problems rolling out the credit product. There were also risks tied to their point-of-sale vendor PAX Global that weren’t really highlighted until things got messy. When all of that started coming out, the financial hit was bigger than folks expected, and that’s basically what sparked the claims from investors.

Now that the settlement has passed this early approval stage, anyone who held shares during the May 2020 to November 2021 window can check whether they’re eligible once the claim process opens up.

Anyone here remember holding STNE back when the credit rollout issues started surfacing?