DLocal Limited (DLO) Failed to Disclose it had Deficient Compliance Controls and Procedures
A shareholder filed a class action lawsuit on behalf of persons and entities that purchased or otherwise acquired DLocal Limited (NASDAQ: DLO) securities between May 2, 2022 and May 25, 2023. DLocal operates a payment processing platform for merchants worldwide and, as part of its operations, engages in certain foreign exchange transactions.
According to the complaint, during the class period, defendants failed to disclose that: (i) DLocal engaged in certain improper conduct and transfers abroad in violation of Argentine laws and/or regulations, including, inter alia, foreign exchange regulations; (ii) accordingly, DLocal’s compliance controls and procedures, including its disclosure controls and procedures and internal controls over financial reporting, were deficient; (iii) all the foregoing subjected the Company to a heightened risk of governmental and/or regulatory scrutiny in Argentina and/or enforcement action by Argentine authorities; and (iv) as a result, the Company’s public statements were materially false and misleading at all relevant times.
What Now: Similarly situated shareholders may be eligible to participate in the class action against DLocal Limited. Shareholders who want to act as lead plaintiff for the class must file their motion for lead plaintiff by December 5, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
