DLocal Limited
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired DLocal Limited (“DLocal” or the “Company”) (NASDAQ: DLO) securities during the period from May 2, 2022 through May 25, 2023, inclusive (the “Class Period”). Investors have until December 5, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On May 26, 2023, Argentine news outlet Infobae published an article reporting that the Argentine government was investigating DLocal for a possible $400 million fraud. Specifically, Infobae reported that the government was investigating the Company for “improper maneuvers” and transfers abroad, with unnamed sources alleging that DLocal “operates as a mere instrument to take advantage of the exchange rate gap and to take dollars abroad with operations that are not reflected in the accounting.” The same day, DLocal issued a response to the Infobae article, characterizing it as “misleading” and “factually incorrect.” DLocal’s response also assured investors that the Company is in close communication with Argentine authorities and had not been notified of any international investigations. On this news, the price of DLocal shares declined by $2.39 per share, or approximately 17.32%, from $13.80 per share to close at $11.41 on May 26, 2023.
On June 5, 2023, DLocal disclosed in a filing with the U.S. Securities and Exchange Commission that it received a request for information from Argentine customs authorities, and that on June 1, 2023, the Company confirmed with a local Argentine court that a petition for inquiry had been filed by an Argentine prosecutor on May 30, 2023 in response to the same article published by Infobae. DLocal assured investors that it intended to respond to all requests for information from regulatory authorities.
Then, on June 15, 2023, DLocal issued a press release revealing that it was in fact engaging with senior representatives of the Argentine federal government to discuss the manner in which DLocal operates in the country and in compliance with foreign exchange regulations.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) DLocal engaged in certain improper conduct and transfers abroad in violation of Argentine laws and/or regulations, including, inter alia, foreign exchange regulations; (ii) accordingly, DLocal’s compliance controls and procedures, including its disclosure controls and procedures and internal controls over financial reporting, were deficient; and (iii) all the foregoing subjected the Company to a heightened risk of governmental and/or regulatory scrutiny in Argentina and/or enforcement action by Argentine authorities.
On May 26, 2023, Argentine news outlet Infobae published an article reporting that the Argentine government was investigating DLocal for a possible $400 million fraud. Specifically, Infobae reported that the government was investigating the Company for “improper maneuvers” and transfers abroad, with unnamed sources alleging that DLocal “operates as a mere instrument to take advantage of the exchange rate gap and to take dollars abroad with operations that are not reflected in the accounting.” The same day, DLocal issued a response to the Infobae article, characterizing it as “misleading” and “factually incorrect.” DLocal’s response also assured investors that the Company is in close communication with Argentine authorities and had not been notified of any international investigations. On this news, the price of DLocal shares declined by $2.39 per share, or approximately 17.32%, from $13.80 per share to close at $11.41 on May 26, 2023.
On June 5, 2023, DLocal disclosed in a filing with the U.S. Securities and Exchange Commission that it received a request for information from Argentine customs authorities, and that on June 1, 2023, the Company confirmed with a local Argentine court that a petition for inquiry had been filed by an Argentine prosecutor on May 30, 2023 in response to the same article published by Infobae. DLocal assured investors that it intended to respond to all requests for information from regulatory authorities.
Then, on June 15, 2023, DLocal issued a press release revealing that it was in fact engaging with senior representatives of the Argentine federal government to discuss the manner in which DLocal operates in the country and in compliance with foreign exchange regulations.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) DLocal engaged in certain improper conduct and transfers abroad in violation of Argentine laws and/or regulations, including, inter alia, foreign exchange regulations; (ii) accordingly, DLocal’s compliance controls and procedures, including its disclosure controls and procedures and internal controls over financial reporting, were deficient; and (iii) all the foregoing subjected the Company to a heightened risk of governmental and/or regulatory scrutiny in Argentina and/or enforcement action by Argentine authorities.