BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased DLocal Limited (“DLocal” or the “Company”) (NASDAQ: DLO) securities between May 2, 2022 and May 25, 2023, inclusive (the “Class Period”). DLocal investors have until December 5, 2023 to file a lead plaintiff motion.
Investors suffering losses on their DLocal investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to email@example.com.
On May 26, 2023, Argentine news outlet Infobae reported 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, May 26, 2023, 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 contact with Argentine authorities, that there is a continuous flow of information with those authorities, and that the Company was not notified by any Argentinian authority regarding a foreign exchange investigation.
Following these revelations, DLocal’s share price fell $2.39 per share, or 17.32%, to close at $11.41 per share on May 26, 2023.
Then, on June 15, 2023, DLocal issued a press release revealing that it was engaging with senior representatives of the Argentine federal government to discuss, among other matters, the manner in which DLocal operates in the country, including DLocal’s compliance with foreign exchange regulations.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors 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; (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; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
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 firstname.lastname@example.org, or visit our website at www.howardsmithlaw.com.
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