Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors of DLocal Limited (“DLocal” or “the Company”) (NASDAQ: DLO) for violating securities laws.
The investigation aims to determine whether the Company has made false and/or misleading statements and/or has failed to disclose relevant information to investors. DLocal is the subject of a report published by Muddy Waters Research on November 16, 2022. The report, titled “DLO: ‘History Never Repeats, But It Often Rhymes,'” concludes that “DLO is Likely a Fraud “. The report claims that the company “has repeated disclosures about its POS and accounts receivable that categorically contradict each other. There is also a conflicting discrepancy between the accounts payable and accounts receivable of two key subsidiaries. These sorts of seemingly harmless inaccuracies are, instead, often signs of cooked books, as it can become very difficult to keep the numbers straight once you start manipulating them. The report adds, “Management and directors sold an extraordinary amount of approximately $1 billion in stock in the first five months following DLO’s IPO. A string of recent high-profile departures recalls the idiom of “rats fleeing a sinking ship.” Based on this report, shares of DLocal fell more than 37% in intraday trading on the same day.
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