LOS ANGELES–(BUSINESS WIRE)–The Law Offices of Frank R. Cruz announces an investigation of Vasta Platform, Ltd. (“Vasta” or the “Company”) (NASDAQ: VSTA) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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In July 2020, Vasta conducted its initial public offering (“IPO”), selling more than 18.5 million Class A common shares at $19.00 per share.
Then, on August 20, 2020, the Company announced its financial results for the second quarter and first half of 2020. Vasta announced a net loss of 54.9 million reais and revenue of 120.23 million reais, representing a revenue decline of 12.9% from the prior year period. Vasta also disclosed that “[t]he different seasonality in revenue recognition seen in 2020 on account of a greater concentration of invoices at the start of the commercial cycle (4Q and 1Q) ended up having a negative impact on the basis of comparison against the same period last year.” The Company further stated that EBITDA was impacted by “the extraordinary effects seen in the period, such as the different seasonality of revenue together with the impact of Covid-19 on the operation, as well as the inventory adjustment and higher marketing expenses.”
On this news, the Company’s share price fell $1.63, or nearly 9%, to close at $16.88 per share on August 21, 2020, representing an 11.16% decline from the IPO price.
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If you purchased Vasta securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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