BENSALEM, Pa.–(BUSINESS WIRE)–Law Offices of Howard G. Smith continues its investigation on behalf of DLocal Limited (“DLocal” or the “Company”) (NASDAQ: DLO) investors concerning the Company’s possible violations of federal securities laws.
On November 16, 2022, Muddy Waters Capital LLC (“Muddy Waters”) published a research report concluding that DLocal “is likely a fraud.” Muddy Waters alleges 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 also alleges that DLocal engaged in multiple misrepresentations to disguise the timing and the source of funding for an insider option exercise.
On this news, DLocal’s share price fell $10.76, or more than 50%, to close at $10.46 per share on November 16, 2022, thereby injuring investors.
Then, on December 1, 2022, Muddy Waters published another report stating that DLocal has held calls with clients from several banks, stressing that it had separated client funds from its own. The 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 share price fell $2.21, or 15.1%, to close at $12.39 per share on December 1, 2022.
If you purchased DLocal 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 Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
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Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
[email protected]
www.howardsmithlaw.com
