XP, Inc. (XP) Accused of Misleading Shareholders in IPO Registration Statement

XP, Inc (XP) held its IPO on December 13, 2019 for alleged violations of the Securities Act of 1933 pursuant to the company's December 2019 initial public offering ("IPO") and whether the Company's officers and directors breached their fiduciary duties to shareholders, offering approximately 83 million shares at $27.00 per share for net proceeds of approximately $1,100 million. Then, on March 6, 2020, The Winkler Group released a report stating that XP had misled investors and failed to disclose pertinent information in its Registration Statement, including: (i) undisclosed related party transactions; (ii) $100M in system failure expenses; (iii) great uncertainty with regard to its independent financial agents; and (iv) the full circumstances regarding its firing and replacing its accounting firm KPMG for PwC, as well as other undisclosed material weaknesses. On this news, XP's share price fell $9.12, or almost 26%, to close at $26.64 per share on March 9, 2020. The stock has yet to recover.