Investigation of XP, Inc.

XP, Inc. (XP) Accused of Misleading Shareholders 

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”), offering approximately 83 million shares at $27.00 per share for net proceeds of approximately $1,100 million. In its Registration Statement, XP continuously touted its technological prowess, advancement and position, stating in relevant part ” technology is a significant competitive advantage for XP… that enables to differentiate XP in the market.” 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.

Send us a message for more information.

Protect your investments.

Sign up for free investment monitoring.

Stock Watch members receive free investment monitoring and notifications.  

Leave your details to get started

Ticker + Amount
This field is for validation purposes and should be left unchanged.