In re XP Inc. Securities Litigation
Bernstein Liebhard is Co-Lead Counsel in the In re XP Inc. Securities Litigation, 20-CV-01502-BMC, pending in the United States District Court for the Eastern District of New York. The Consolidated Amended Complaint (the “Complaint”) alleges that XP Inc. (“XPI”) misled shareholders that purchased or acquired its Class A common stock pursuant and/or traceable to XPI’s registration statement declared effective on December 10, 2019 in connection with the company’s initial public offering (“IPO”). Specifically, the Complaint alleges that XPI’s registration statement failed to disclose: (i) material, recurring, and pervasive systems failures and order execution errors, totaling approximately R$100 million in XPI’s core broker-dealer business segment; (ii) the Company paid R$5.47 million in penalties to satisfy Brazilian regulators and to compensate harmed clients stemming from charges against key XPI executives and also failed to disclose certain pending regulatory actions against the company and its key executives at the time of the IPO; and (iii) that XPI’s core business was highly dependent on its network of Independent Financial Agents and XPI had been accused by a competitor of engaging in anti-competitive contact that violated XPI’s agreements with regulators and potentially exposed the company to a costly regulatory investigation, penalties, or potentially modification of XPI’s agreement with regulators which could affect the company’s business. The action, which alleges violations of the Securities Act of 1933, is pending.