Sign In
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
id: 455, Created by Stan Vick, Scout

DLocal (DLO) Misconduct Case Investigation

  • DLocal released financial results missing analyst estimates.
  • Muddy Waters' reports concluded that DLO is "likely a fraud."
  • $DLO fell dramatically, injuring shareholders.
  • Investors may have reasons to suspect DLocal of misconduct.
On April 5, 2023, DLocal released Q4 2022 financial results, reporting diluted earnings per share of $0.06 on total revenue of $118 million, missing analyst estimates.

On this news, $DLO fell 26%, thereby injuring investors.

On December 1, 2022, Muddy Waters published a report stating that DLocal has held calls with clients from several banks, stressing that it had separated client funds from its own. The report also said that DLocal’s calls with clients were "non-specific" and "sweet-talking," and that "all [the Company] needed to do to address this issue was provide an explanation as to how the cash flows reconcile." On this news, DLocal’s share price fell 15.1%.

On November 16, 2023, 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
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Price manipulation
Insider Trading
Breach of Fiduciary duty
Suspected Party
Investment Bank
Service Provider
Research Entity
Hedge Fund
Security Type
Trade Direction
Shock Event Date
05 April 2023
Collecting participants…
Created by Stan Vick, Scout

Dlocal Ltd

DLocal Limited operates a payment processing platform worldwide. Its payments platform enables merchants to get paid and to make payments online. The company serves commerce, streaming, ride-hailin...

    Dr. Luis Bonavita 1294, Montevideo, Uruguay, 11300