NEW YORK–(BUSINESS WIRE)–#A–Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against DLocal Ltd (“DLocal” or the “Company”) (NASDAQ: DLO) in the United States Supreme Court of the State of New York on behalf of all persons and entities who purchased or otherwise acquired DLocal securities in connection with DLocal’s June 2021 IPO. Investors have until May 1, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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DLocal, which conducted its IPO in New York and trades on the NASDAQ under the ticker symbol “DLO,” connects global merchants to emerging markets, earning revenues from fees charged to merchants in connection with payment processing services for cross-border and local payment transactions.
In June 2021, Defendants (defined below) commenced DLocal’s IPO, issuing over 33.8 million shares at $21.00 per share, including the full exercise of the Underwriter Defendants’ (defined herein) option to purchase additional shares, all pursuant to the Registration Statement.
Among other things, the Registration Statement repeatedly touts DLocal’s supposed “growing and deepening relationships” with new and existing global merchant clients. The Registration Statement tells prospective investors that DLocal measures its success by means of its “cohort” performance in terms of TPV, or total payment volume, and offers historic TPV data to support the narrative that DLocal has a strong track record. In addition, the Registration Statement advises prospective investors that a remediation plan designed to improve the Company’s internal controls over financial reporting is being implemented, assuring the market that DLocal is serious about its internal controls over financial reporting.
The Registration Statement’s numerous representations about DLocal’s TPV and its internal controls over financial reporting, however, contained untrue statements of material fact and omitted to state material facts both required by governing regulations and necessary to make the statements made not misleading. Specifically, the Registration Statement misrepresents the TPV derived from new merchants in DLocal’s 2019 and 2020 cohorts, which, at the time of the IPO, were severely lower than what the Registration Statement reported, as well as the fact that the remediation plan DLocal implemented before the IPO was patently defective and, thus, incapable of improving the Company’s internal controls over financial reporting.
When the truth regarding the Company’s TPV and internal controls reached the market, DLocal’s common stock cratered over 50%. All told, investors have lost hundreds of millions of dollars.
If you purchased or otherwise acquired DLocal shares and suffered a loss, are a long-term stockholder, have information, 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 Brandon Walker or Melissa Fortunato by email at [email protected], telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.