Blog
How it works
Services
Sign In
Homepage
Blog
How it works
Services
Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
DLO.US
id: 455, Created by Stan Vick Chase, Scout

Dlocal Ltd

Hedge fund Muddy Waters issued a report critical of DLocal (DLO), concluding that the Company is "likely a fraud."
  • the Short Seller Fund alleged that DLocal disclosures "flatly contradict one another" and said there is a "contradictory discrepancy between two key subsidiaries' accounts payable and accounts receivable."
  • Muddy Waters sees "signs of cooked books" and said it has concerns about DLocal's controls to protect client funds.
On this news, DLO shares dropped over 50% and the Company lost more than $1.7 billion of its capitalization.

Going back in June 2021, Dlocal conducted a successful IPO, with the shares nearly doubling in its initial months, but DLO stock has fallen below its offering price in recent months.

Managers and directors sold about $1 billion worth of DLocal shares within the first five months of the Company being public and said there have been a number of high-level departures, factors that Muddy Waters says "brings to mind the idiom about 'rats fleeing a sinking ship.'"

DLocal commented on Mundy Water's Report: "The report contains numerous inaccurate statements, groundless claims, and speculation. Short seller reports are often designed to drive the stock price downwards to serve the short seller’s interests to the detriment of the company’s shareholders. We caution shareholders from making investment decisions based on this report. Dlocal will rebut the allegations in the appropriate forum in due course."

Taking all facts and research into account, Investors have reasons to suspect that their rights were grossly violated whether by Company, its Leaders and Service Providers, or an Influential Hedge Fund which intentionally ruined DLO stock quotes.
Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Fraud
Failure to Disclose
Price manipulation
Insider Trading
Malpractice
Negligence
Breach of Fiduciary duty
Omissions
Suspected Party
Directors
Management
Shareholder
Influencer
Investment Bank
Service Provider
Research Entity
Hedge Fund
Security Type
Stocks
Trade Direction
Long
Shock Event Date
16 November 2022
Collecting participants…
Created by Stan Vick Chase, Scout

Dlocal Ltd

DLocal Limited operates a payments platform in the United States, Europe, China, and internationally. Its payments platform enables merchants to get paid and to make payments online. The company se...

    Ticker
    DLO.US
    ISIN
    KYG290181018
    CIK
    1846832
    Sector
    Technology
    Industry
    Software-Infrastructure
    Country
    USA
    Address
    Dr. Luis Bonavita 1294, Montevideo, Uruguay, 11300