The Law Offices of Frank R. Cruz Continues Investigation of DLocal Limited (DLO) on Behalf of Investors
News provided byThe Law Offices of Frank R. Cruz
May 26, 2023, 6:58 PM ET
LOS ANGELES, May 26, 2023 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz continues its investigation of DLocal Limited (“DLocal” or the “Company”) (NASDAQ: DLO) on behalf of investors concerning the Company’s possible violations of federal securities laws.
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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.
Then, on April 5, 2023, DLocal released its fourth quarter 2022 financial results, reporting diluted earnings per share of $0.06 on total revenue of $118 million, missing analyst estimates.
On this news, DLocal’s share price fell approximately 26% on April 5, 2023, thereby injuring investors further.
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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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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