Investors can contact the law firm at no cost to learn more about recovering their losses
LOS ANGELES, Jan. 05, 2023 (GLOBE NEWSWIRE) -- The Portnoy Law Firm advises DLocal Limited (NASDAQ: DLO) investors that the law firm has initiated an investigation on behalf of investors that lost money on their stock. DLocal Limited investors are encouraged to contact the firm to discuss their legal rights.
Investors are encouraged to contact attorney Lesley F. Portnoy, by phone 844-767-8529 or email: lesley@portnoylaw.com, to discuss their legal rights, or click here to join the case via www.portnoylaw.com. The Portnoy Law Firm can provide a complimentary case evaluation and discuss investors’ options for pursuing claims to recover their losses.
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.
Please visit our website to review more information and submit your transaction information.
The Portnoy Law Firm represents investors in pursuing claims against caused by corporate wrongdoing. The Firm’s founding partner has recovered over $5.5 billion for aggrieved investors. Attorney advertising. Prior results do not guarantee similar outcomes.
Lesley F. Portnoy, Esq.
Admitted CA and NY Bar
lesley@portnoylaw.com
310-692-8883
www.portnoylaw.com
Attorney Advertising
