SAN FRANCISCO, CA / ACCESSWIRE / November 21, 2022 / Hagens Berman urges DLocal Limited (NASDAQ:DLO) investors who suffered significant losses to submit your losses now.
Contact An Attorney Now: [email protected]
DLocal Limited (NASDAQ: DLO) Investigation:
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.
"We're focused on investors' losses and whether DLocal cooked its books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in DLocal and have significant losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding DLocal should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
# # #
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Reed Kathrein, 844-916-0895
SOURCE: Hagens Berman Sobol Shapiro LLP