DLocal Limited Faces Legal Scrutiny Amidst Allegations – Investors Urged to Seek Legal Counsel
DLocal Limited, a prominent global payments platform, is currently under investigation by the Argentine government following allegations of improper conduct and transfers abroad. The investigation, which centers around potential violations of Argentine laws and regulations, including foreign exchange regulations, has prompted leading national securities law firm Faruqi & Faruqi, LLP to launch an investigation into potential claims against the company.
Faruqi & Faruqi, LLP is urging investors who purchased or acquired securities in DLocal stock or options between May 2, 2022, and May 25, 2023, to come forward and discuss their legal rights. The firm is offering a free consultation to affected investors, with no cost or obligation.
The investigation focuses on whether DLocal and its executives violated federal securities laws by making false and/or misleading statements and failing to disclose crucial information. It is alleged that the company’s compliance controls and procedures, including its disclosure controls and procedures and internal controls over financial reporting, were deficient. Consequently, DLocal may face heightened risk of governmental and/or regulatory scrutiny in Argentina, potentially leading to enforcement action by Argentine authorities.
The allegations against DLocal came to light when Argentine news outlet Infobae published an article on May 26, 2023, reporting a possible $400 million fraud investigation involving the company. The article claimed that DLocal engaged in improper maneuvers and transfers abroad, allegedly taking advantage of the exchange rate gap and conducting operations that were not reflected in the accounting.
In response, DLocal issued a statement characterizing the Infobae article as misleading and factually incorrect. The company assured investors that it was in close contact with Argentine authorities and had not been notified of any foreign exchange investigation. However, these developments had a significant impact on DLocal’s Class A common share price, which fell by 17.32% on May 26, 2023.
Subsequently, DLocal disclosed in a filing with the U.S. Securities and Exchange Commission on June 5, 2023, that it had received a request for information from Argentine customs authorities. The company confirmed that an Argentine prosecutor had filed a petition for inquiry based on the Infobae article. DLocal expressed its intention to respond to all requests for information from regulatory authorities to demonstrate compliance with applicable regulations.
On June 15, 2023, DLocal issued a press release revealing its engagement with senior representatives of the Argentine federal government to discuss its operations in the country, including compliance with foreign exchange regulations. This proactive approach demonstrates the company’s commitment to addressing any concerns raised by regulatory authorities.
While the investigation is ongoing, it is important for investors to stay informed and protect their rights. Faruqi & Faruqi, LLP encourages anyone with information regarding DLocal’s conduct to come forward, including whistleblowers, former employees, shareholders, and others. The law firm is dedicated to ensuring justice and fair representation for all affected parties.
DLocal Limited has established itself as a leading global payments platform, facilitating seamless cross-border transactions for businesses worldwide. Despite the ongoing investigation, the company’s commitment to engaging with regulatory authorities and addressing any potential compliance issues showcases its dedication to maintaining transparency and upholding the highest standards of business ethics.
Investors who believe they may have been affected by the allegations against DLocal are encouraged to contact Faruqi & Faruqi, LLP to discuss their legal options. The law firm has a proven track record in handling securities class actions and is committed to protecting the rights of investors.
Please note that this article is for informational purposes only and does not constitute legal advice. Any decisions regarding legal action should be made in consultation with qualified legal professionals.
About Faruqi & Faruqi, LLP:
Faruqi & Faruqi, LLP is a leading minority and woman-owned national securities law firm with offices in New York, Pennsylvania, California, and Georgia. The firm specializes in securities litigation, representing investors who have suffered financial losses due to corporate wrongdoing. With a commitment to justice and a history of successful outcomes, Faruqi & Faruqi, LLP is dedicated to advocating for the rights of investors.