An investigation on behalf of investors of Vasta Platform Limited (NASDAQ: VSTA) shares over potential securities laws violations by Vasta Platform Limited and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Vasta Platform Limited (NASDAQ: VSTA) concerning whether a series of statements by Vasta Platform Limited regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Brazil based Vasta Platform Limited, an education company, provides educational and digital solutions to private schools operating in the K-12 educational sector in Brazil. On or around July 30, 2020, Vasta Platform Limited conducted its initial public offering ('IPO'), selling 18,575,492 of its Class A common shares priced at $19.00 per share.

Then, on August 20, 2020, Vasta Platform Limited announcing its financial results for the second quarter and first half of 2020. Among other results, Vasta announced a second quarter net loss of 54.9 million reais and revenue of 120.23 million reais, representing a revenue decline of 12.9% from the year-ago quarter. Vasta also advised investors that adjusted earnings before interest, taxes, depreciation, and amortization ('EBITDA'), excluding non-recurring effects, was negative by 1.7 million reais in the second quarter, and 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 advised that negative EBITDA of 10.9 million reais in the second quarter was 'due to 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.'