SAN FRANCISCO, June 26, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges DLocal Limited (NASDAQ: DLO) investors who suffered substantial losses to submit your losses now.
Visit: www.hbsslaw.com/investor-fraud/DLO
Contact An Attorney Now: DLO@hbsslaw.com | 844-916-0895
DLocal Limited (NASDAQ: DLO) Investigation:
Emerging market payment processor DLocal has attracted investor interest by reporting tremendous revenue growth and profit margins far superior to any of its direct competitors.
But, on Nov. 16, 2022, Muddy Waters Capital published a scathing report concluding that “DLO is likely a fraud.” Muddy Waters alleged that DLocal has repeated disclosures about its Total Processing Volume and accounts receivable “that flatly contradict one another,” and that there is “a contradictory discrepancy between two key subsidiaries’ accounts payable and accounts receivable.” Muddy Waters stated that these inconsistencies are “often signs of cooked books because it can become quite a strain to keep the numbers straight once you start manipulating them.” Muddy Waters also alleged that DLocal engaged in multiple misrepresentations to disguise the timing and the source of funding for an insider option exercise.
Though DLocal later denied Muddy Waters’ accusations, on Apr. 5, 2023, DLocal delivered disappointing Q4’22 results, reporting diluted earnings per share of $0.06 on total revenue of $118 million, both numbers that missed analyst estimates.
Most recently, various media outlets have reported that Argentine authorities are investigating DLocal for improper business practices and fund transfers that could constitute possible fraud.
These events caused the price of DLocal shares to sharply decline.
“We’re focused on investors’ losses and whether DLocal cooked its books,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in DLocal and have significant losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding DLocal should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email DLO@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
