SAN DIEGO, March 14, 2023 (GLOBE NEWSWIRE) --
The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of persons or entities who purchased or acquired DLocal Limited (NASDAQ: DLO) pursuant to the Offering Documents issued in connection with the Company's initial public offering ("IPO") in June 2021, for violations of the Securities Act of 1933. DLocal purports to be an online payments manager in emerging markets facilitating currency conversions.
What Now: Similarly situated shareholders may be eligible to participate in the class action against DLocal. Shareholders who want to act as lead plaintiff for the class should contact Robbins LLP. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: DLocal Limited (DLO) Misrepresented Material Facts in its Offering Documents in Support of its IPO
According to the complaint, on June 4, 2021, DLocal filed a prospectus on Form 424B4 with the SEC in connection with the IPO, which incorporated and formed part of the Registration Statement (the “Prospectus” and, together with the Registration Statement, the “Offering Documents”). On or about that same day, DLocal conducted the IPO pursuant to the Offering Documents, issuing 29,411,765 Class A common shares of the Company’s securities to the public at the Offering price of $21.00 per share.
The Offering Documents were negligently prepared and failed to disclose that DLocal was misrepresenting its Total Processing Volume (“TPV”) and DLocal misrepresented its foreign currency receivables.
On November 16, 2022, market researchers Muddy Waters Capital published an article titled “DLO: History Never Repeats Itself, but it Does Often Rhyme.” The Muddy Waters Report alleged, inter alia, that: (i) “DLO has repeated disclosures about its TPV and accounts receivable that flatly contradict one another”; (ii) the existence of “a contradictory discrepancy between two key subsidiaries’ accounts payable and accounts receivable”; (iii) conflicting receivable disclosures; (iv) an ex post cover-up of the facts surrounding the Company lending $31.5 million to Defendant Kanovich and Defendant Singer; and (v) accounting discrepancies that gave “rise to the concern that DLO possibly dipped into client funds for extra cash to pay insiders.” On this news, DLocal’s share price fell $10.76 per share, or over 50%, from the previous closing price.
Then, on December 1, 2022, Muddy Waters published a second report stating that DLocal held calls with clients from several banks, stressing that it had separated client funds from its own. The Second Muddy Waters Report also said that DLocal’s calls with clients were “non-specific” and “sweet-talking,” and that “all [the Company] needed to do to address this issue was provide an explanation as to how the cash flows reconcile.” On this news, DLocal’s stock price fell $2.21 per share, or 15%, to close at $12.39 per share on December 1, 2022.
Contact us to learn more:
Aaron Dumas
(800) 350-6003
adumas@robbinsllp.com
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against DLocal Limited settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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