CI&T Holdings Limited Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against CI&T Holdings Limited (CINT).

If you purchased or held CI&T Holdings Limited securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About CI&T Holdings Limited

CI&T Holdings Limited provides strategy, design, and engineering services to help organizations accelerate their digital journeys. The company is known for working with large enterprises across various industries, offering solutions that include artificial intelligence, cloud computing, and agile software development.

Founded in Brazil, CI&T Holdings Limited has expanded its operations internationally, serving clients in North America, Europe, and Asia. The company is publicly traded on the New York Stock Exchange under the ticker symbol CINT.

Potential Items Under Investigation

Lawyers are investigating whether CI&T Holdings Limited may have made misleading statements or omitted material information in its public filings and press releases during the period from May 18, 2022 through March 6, 2024.

On March 7, 2024, CI&T Holdings Limited announced it would restate prior financial statements due to “non-cash accounting errors related to deferred income accounting for tax-deductible goodwill.” The company’s audit committee concluded that the audited 2022 financials and unaudited interim 2023 financials (Q1–Q3) “should no longer be relied upon”. This disclosure triggered a sharp decline in the company’s stock price, which fell from about $4.45 to $3.97 per share, a drop of $0.48 or 10.78%, on March 7, 2024, erasing roughly $10–11 million in market value.

The investigation may focus on whether CI&T Holdings Limited’s prior financial statements and press releases contained material misstatements or omissions. For example, in its May 18, 2022 earnings release, the company highlighted 66% revenue growth and raised full-year guidance, but did not draw attention to a 26.2% year-over-year drop in net income—a detail only found in the financial tables. Management’s public statements at the time focused on “strong net revenue growth” and “demand remains strong,” potentially omitting important information about weakening profitability.

Similarly, in August 2022, CI&T Holdings Limited reported a 67% increase in revenue for the second quarter, but net profit dropped by 42% compared to the prior year. Despite this, CEO Cesar Gon described the results as “combining sound profitability with sustainable growth,” which lawyers may investigate for potentially misleading investors about the company’s actual financial health.

The company’s full-year 2022 press release stated that net profit was R$125.9 million, unchanged from 2021. However, after the restatement, true 2022 net income was only about R$95.7 million—a difference of R$30.2 million. Quarterly releases in 2023 also reported strong profit gains, but these figures did not reflect the tax accounting errors that later required correction.

Legal professionals may review whether shareholders were informed about material weaknesses in the company’s internal controls over financial reporting. CI&T Holdings Limited’s 2023 20-F disclosed a material weakness that resulted in the restatement of 2022 and interim 2023 financial statements. However, it appears there were no disclosures alerting investors to these weaknesses.

The investigation could further assess whether the timing of the March 7, 2024 restatement announcement, coinciding with a day when broader markets were rallying, demonstrates that the stock price decline was specifically linked to the company’s disclosure and not to external market factors.

Your Rights and Next Steps

If you purchased CI&T Holdings Limited securities between May 18, 2022 and March 6, 2024 and experienced financial losses, you may have important legal rights. This is currently an investigation, not a filed lawsuit. Lawyers are ready to help investors understand their options and determine whether they may be eligible to participate in any future class action that could arise from these events.

Investors are encouraged to gather documentation of their purchases, sales, and holdings of CI&T Holdings Limited securities during the relevant period. By participating in the investigation, investors can help ensure that their interests are represented and that any potential recovery is pursued on behalf of all affected shareholders.

You May Be Entitled to Compensation

Securities investigations are time-sensitive. Investors who purchased CI&T Holdings Limited securities and suffered losses may be eligible to join any potential class action and seek compensation for their losses.

To learn more and take the next step, complete the form below to join the investigation.