Suspicions of fraud: A class action lawsuit has been filed by shareholders of Unicorn dLocal in a US court

A New York law firm announced it is leading a class action lawsuit (Work class) Civil suit against Unicorn dLocal, the digital payments company denounced by the Argentine government for improper maneuvers in the exchange market and transfers abroad made for the purpose of “currency diversion.” In this context, operations are estimated at approximately 400 million US dollars.

“Pomerantz LLP announces that a class action lawsuit has been filed against DLocal Limited (“DLocal” or the “Company”) (NASDAQ: DLO) and certain of its executive officers,” the official statement begins. The people included in the lawsuit were not clarified.

The lawsuit was filed in the Eastern District Court of New York (filed as 23-cv-07501), and is being handled by counsel Robert S. Willoughby It is on behalf of all persons and entities who purchased or acquired company stock between May 2, 2022 and May 25, 2023, “seeking to recover damages for violations of federal laws.” Until December 5, other shareholders who believe they have been harmed can join the case.

“a Jlas work Collects alleged victims of the defendant’s action. An attorney is appointed to represent a group of people or companies at trial and reports and arguments are presented. He explained that the lawsuit proceeds like an individual trial. Sebastian Marelfrom Latin Consultants.

The lawsuit alleges that during the reference period, the company made “materially false and misleading statements regarding the company’s business, operations and policies.” complianceThey did not disclose that “DLocal engaged in certain inappropriate conduct and transfers abroad in violation of Argentine laws and/or regulations, including, among others.” OthersExchange regulations.

Basically, the suspicion is that the company concealed or falsified sensitive information related to the nature of its business and that this harmed those who bought the shares. Pomerantz cites the first observation of information On this topic, he states a denial from the company and details “and asserts that ‘following these events, the price of DLocal’s Class A common stock fell $2.39 per share, or 17.32%, to close at $11.41 per share on May 26, 2023.’”

Of course, a few days later, the company informed the Securities and Exchange Commission, the regulator of the Wall Street market, where the company has been listed since 2021, that it had “received a request for information from the Argentine customs authorities,” that the public prosecutor was investigating them and that they had “ “Intention to respond to every request for information from regulatory authorities to demonstrate that they have acted in accordance with applicable regulations.”

According to the New York studio, on June 15, 2023, DLocal issued a press release revealing that it was “engaging with senior representatives of the Argentine federal government to discuss, among other matters, the manner in which dLocal operates in the country.”

Pomerantz LLP has offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, and claims to be a leader in the areas of corporate, securities, and antitrust litigation. “Founded by the late Abraham L. Pomerantz Known as the dean of the class action bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, he continues the tradition of fighting for the rights of victims of securities fraud, breaches of fiduciary duties and corporate misconduct. The company has recovered billions of dollars in damages on behalf of group members.

In the middle of last month, there was another local complaint against the company: the government reported an alleged scam to access and transfer official dollars to the United States through its payment network.

Through a customs investigation, the actions of what could be an online educational services company called Academiland LLC and/or Be U Institute were discovered, which registered operations in the name of users who never contracted for its services. There were 20 people who died before the takeover date, according to official sources.

“The company, based in Delaware, sent money to the United States through dLocal Argentina SA. The goal was to access official dollars and take them out of the country. It simulated the acquisition of services that were not only provided, but supported by the use of a base Data with characteristics indicating a lack of legality. Customs raided the homes of the alleged owners of the educational company Academiland LLC, confiscating documents and computers.

Customs analyzed 9,304 collection operations carried out by the alleged educational institution, worth $395 million. It is estimated that each of these were payments made by local students, but were only paid by credit card: all others were paid in cash at payment centers and against the dLocal account.

This year there have been some changes in dLocal’s management. One of its founders, sergio vogel, He was appointed co-chairman and co-CEO was also appointed. It’s about Pedro Arendtformer CFO for 12 years at Mercado Libre.