StoneCo $26.75 Million Securities Class Action Settlement

Investors who held StoneCo Ltd. publicly traded common stock between May 27, 2020, and Nov. 16, 2021, may be eligible to claim a cash payment from a class action settlement.

StoneCo Ltd. agreed to pay $26.75 million to settle a class action lawsuit alleging it made false and misleading statements about the risks and performance of its credit product and misattributed rising delinquency rates to external factors.

Who can file a claim?

The settlement class includes:

• Investors who personally purchased or otherwise acquired StoneCo publicly traded common stock between May 27, 2020, and Nov. 16, 2021
• Investors whose purchases or acquisitions allegedly damaged them

Additional details

• Both individuals and entities can be class members.
• Authorized representatives may submit claims on behalf of beneficial owners subject to the requirements of the claim form.
• Executors, administrators, guardians, legal representatives or trustees may submit claims on behalf of others and must provide proof of authority.
• Investors who held shares only through a mutual fund are not class members.

How much is the StoneCo payout?

The total settlement fund is $26,750,000. The amount each class member receives depends on several factors:

• The number of valid claims filed
• The number of shares purchased or acquired during the class period
• The timing of each investor purchase sale and holding
• The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average distribution per allegedly damaged share is approximately $0.12 before deductions for taxes, notice and administration costs, and attorneys fees and expenses.
• The estimated average distribution after deductions is approximately $0.08 per allegedly damaged share.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
• Recognized loss amounts depend on purchase and sale timing:
• For shares sold before Aug. 25, 2021, the recognized loss is $0.
• For shares sold between Aug. 25, 2021, and Nov. 16, 2021, the recognized loss is the lesser of artificial inflation at purchase minus artificial inflation at sale or out-of pocket-loss.
• For shares sold between Nov. 17, 2021, and Feb. 14 2022, the recognized loss is the lesser of artificial inflation at purchase, purchase price minus the average closing price up to the sale date or out-of-pocket loss.
• For shares held as of the close on Feb. 14, 2022, the recognized loss is the lesser of artificial inflation at purchase or purchase price minus $15.90.

• Artificial inflation per share depends on the price at purchase:
• May 27, 2020, to Aug. 24 2021: $14.50
• Aug. 25, 2021, to Aug. 30 2021: $12.67
• Aug. 31, 2021, to Nov. 16 2021: $9.43

• If total recognized losses exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a settlement payment

Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Feb. 17 2026.

Settlement administrator’s mailing address: StoneCo Securities Settlement, c/o Verita Global, LLC, P.O. Box 301135, Los Angeles, CA 90030-1135

The claims administrator will acknowledge receipt of each class member's claim form by mail within 60 days of submission. Those who do not receive acknowledgement should contact the settlement administrator.

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or full taxpayer identification number. They must also provide purchase, acquisition and sale information, including:

• Trade dates
• Number of shares purchased, acquired or sold
• Total purchase, sale or acquisition price

Claimants must provide documentation to support their transactions in StoneCo common stock. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the transactional information found in a confirmation slip
• Other documentation the settlement administrator deems adequate

Claimants must also provide proof of holdings at the beginning and end of the relevant periods. Self-generated emails or spreadsheets are not sufficient.

Payout options

• Physical check

$26.75 million settlement fund

The $26,750,000 settlement fund includes:

• Settlement administration costs: Amount not specified
• Attorneys' fees: Up to $8,025,000
• Attorneys' expenses: Up to $420,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Deadline to opt out: Feb. 6, 2026
• Deadline to file a claim: Feb. 17, 2026
• Fairness hearing: Feb. 27, 2026

When is the StoneCo securities class action settlement payout date?

The settlement administrator will issue payments to eligible class members after it completes claim processing and the court resolves any appeals and grants final approval to the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged StoneCo made false and misleading statements about the risks and profitability of its credit product and misattributed delinquency trends to outside factors. The plaintiffs claimed these alleged misstatements caused investors to purchase or acquire StoneCo shares at artificially inflated prices.

StoneCo denies all allegations of wrongdoing and liability but agreed to settle to avoid the risks costs and delays of further litigation.

Sources

1. Class notice
2. Claim form
3. Settlement agreement