The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired 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.

If you are a shareholder who suffered a loss, click here to participate.

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.

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If you purchased DLocal securities during the Class Period, you may move the Court no later than December 5, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. 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, 2121 Avenue of the Stars, Suite 800, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, 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.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231010068626/en/

The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of DLocal Limited (DLO) Investors