NEW YORK, Jan. 21, 2023 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of DLocal Limited (“DLocal” or the “Company”) DLO. Those investors are advised to contact Robert S. Willoughby at newaction@pomlaw.com or 888-476-6529, extension 7980.

The investigation concerns whether DLocal and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.

[Click here for information about joining the class action]

On November 16, 2022, Muddy Waters Research (“Muddy Waters”) released a report titled “DLO: ‘History Never Repeats Itself, but it Does Of Rhyme'” which concluded that “DLO is likely a scam “, stating that the company has repeatedly made disclosures about its TPV and claims that flatly contradict each other. There is also a conflicting discrepancy between the payables and receivables of two key subsidiaries. These sorts of seemingly innocuous misstatements are often indicative of fake books instead, because keeping the numbers straight once you start manipulating them can get pretty tiring. In addition, the report states, “Management and directors have issued ~$1 billion of exceptional stock within the first five months that DLO has gone public. ‘”

As a result of this news, DLocal’s stock price fell $10.76 per share, or 50.71%, to close at $10.46 per share on November 16, 2022.

Then, on December 1, 2022, Muddy Waters released a second report stating that DLocal had held discussions with customers from multiple banks and stressed that it had segregated customer funds from its own. The report also said that DLocal’s calls to customers were “non-specific” and “lovely,” and that “all [the Company] Solving this problem required an explanation of how the cash flows are reconciled.”

As a result of this news, DLocal’s stock price fell $2.21 per share, or 15.1%,…