DLocal Limited
Investors that purchased the Company’s securities and have suffered a loss, please fill in transaction information below, or email to info@portnoylaw.com.
There is no cost or obligation associated with submitting your information. If you are a shareholder who suffered a loss, please submit your contact information and purchase information to participate in the putative class action.
We also encourage you to contact Lesley F. Portnoy of The Portnoy Law Firm, at 310.692.8883, to discuss your rights free of charge. You can also reach us through the firm’s website at www.portnoylaw.com, or by email at info@portnoylaw.com.
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The Portnoy Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
CONTACT:
Portnoy Law Firm
Lesley F. Portnoy, Esq.,
www.portnoylaw.com
Office: 310.692.8883
1800 Century Park East, Suite 600
Los Angeles, CA 90067
info@portnoylaw.com
In the past, DLocal has touted its Total Processing Volume for merchant clients (“TPV”) metric as “an operating metric of the aggregate value of all payments successfully processed through our payments platform,” claiming “we believe that TPV is an indicator of the success of our global merchants, the satisfaction of their end users, and the scale and the growth of our business,” and repeatedly emphasizing TPV growth in past reports of financial results.
But, on Nov. 16, 2022, Muddy Waters Capital published a scathing report concluding that “DLO is likely a fraud” and “[w]e also have concerns its disclosures about, and controls of, client funds.”
Muddy Waters alleges that “DLO has repeated disclosures about its TPV and accounts receivable that flatly contradict one another.” Muddy Waters further alleges: (1) “[t]here is also a contradictory discrepancy between two key subsidiaries’ accounts payable and accounts receivable;” (2) “[t]hese types of seemingly innocuous misstatements are, often signs of cooked books because it can become quite a strain to keep the numbers straight once you start manipulating them;” (3) “there are clear issues with DLO’s disclosures about its TPV, exacerbating our concerns about DLO’s revenue and financials;” and, (4) “we are concerned that DLO has overstated its revenue.”
In addition, Muddy Waters wrote about the controls for client funds that “DLO possibly dipped into client funds to pay insiders.”
In response, the price of DLocal shares crashed over 50% lower in a single trading day.
