A Comprehensive Guide to the DLocal Class Action Lawsuit

If you suffered losses in DLocal stock, contact DLocal stock loss lawyer Timothy L. Miles about a DLocal class action lawsuit

Introduction

​The DLocal class action lawsuit centers around allegations of securities fraud committed by DLocal Limited, a payment processing platform for merchants worldwide. This guide aims to provide a comprehensive overview of the DLocal lawsuit, including the parties involved, the allegations, and the potential outcomes for investors affected by the case.

What is a Class Action Lawsuit?

A class action lawsuit is a legal action filed on behalf of a group of individuals who have suffered similar harm or losses due to the actions of a defendant. In the case of the DLocal class action lawsuit, the plaintiffs seek to represent purchasers or acquirers of DLocal Limited securities during a specific period.

Parties Involved in the DLocal Class Action Lawsuit

The DLocal class action lawsuit, titled Francis v. DLocal Limited, No. 23-cv-07501 (E.D.N.Y.), involves DLocal Limited and certain top executive officers as defendants. The lead plaintiff, Francis, is seeking to represent all individuals who purchased DLocal securities between May 2, 2022, and May 25, 2023, both dates inclusive.

Class Period and Allegations

The class period for the DLocal class action lawsuit spans from May 2, 2022, to May 25, 2023. During this time, the lawsuit alleges that DLocal engaged in certain improper conduct and transfers abroad, violating Argentine laws and regulations. These actions, including foreign exchange relations, were not properly disclosed to investors.

Violations of the Securities Exchange Act of 1934

The DLocal class action lawsuit alleges violations of the Securities Exchange Act of 1934. It claims that DLocal's compliance controls and procedures, including disclosure controls and procedures and internal controls over financial reporting, were deficient. These deficiencies exposed DLocal to a heightened risk of governmental and regulatory scrutiny in Argentina, potentially leading to enforcement action.

DLocal's Compliance Controls and Procedures

According to the lawsuit, DLocal's compliance controls and procedures were insufficient in preventing the alleged improper conduct and transfers abroad. This failure to establish robust internal controls could have contributed to the violation of Argentine laws and regulations, as stated in the Infobae article.

Heightened Risk of Governmental and Regulatory Scrutiny

The deficiencies in DLocal's compliance controls and procedures exposed the company to an increased risk of governmental and regulatory scrutiny in Argentina. The allegations of fraud and improper maneuvers, as reported by Infobae, further amplified this risk. The potential enforcement action by Argentine authorities could have significant implications for DLocal and its investors.

The Infobae Article and Its Impact on DLocal's Stock Price

On May 26, 2023, Infobae, an Argentine news outlet, published an article titled "The Government Investigates the only Uruguayan Unicorn for alleged fraud against the Argentine State and analyzes denouncing it in the US." The article detailed the Argentine government's investigation into DLocal for a possible $400 million fraud related to improper maneuvers and transfers abroad.
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The publication of this article had a substantial impact on DLocal's stock price, causing a decline of over 17%. The allegations made in the article raised concerns about DLocal's operations and compliance with Argentine laws and regulations, leading to increased investor scrutiny and potential legal action.

How to Become the Lead Plaintiff in the DLocal Class Action Lawsuit

In the DLocal class action lawsuit, the lead plaintiff represents the entire class of investors who suffered losses in DLocal securities during the specified class period. The lead plaintiff acts as the primary spokesperson and oversees the progress of the lawsuit on behalf of the class.

The Role of the Lead Plaintiff

In the DLocal class action lawsuit, the lead plaintiff represents the entire class of investors who suffered losses in DLocal securities during the specified class period. The lead plaintiff acts as the primary spokesperson and oversees the progress of the lawsuit on behalf of the class.

Eligibility and Benefits of Being a Lead Plaintiff

To become the lead plaintiff in the DLocal class action lawsuit, individuals must meet certain criteria and file a lead plaintiff motion with the court before the designated deadline. The lead plaintiff has the opportunity to select a law firm to litigate the securities class action lawsuit and actively participate in all negotiations relating to potential settlements.
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Being the lead plaintiff also allows for more competitive attorney fees and reduced litigation costs. Additionally, lead plaintiffs have the benefit of being involved in governance reform resulting from the litigation, potentially leading to long-term benefits for investors.

Non-U.S. Investors and Their Participation in the Lawsuit

Non-U.S. investors are eligible to serve as lead plaintiffs in the DLocal class action lawsuit. U.S. courts recognize the adequacy of non-U.S. investors as lead plaintiffs, provided they meet the necessary criteria. Therefore, if non-U.S. investors suffered losses in DLocal stock, they can seek appointment as lead plaintiffs and actively participate in the lawsuit.

Filing Deadline for Lead Plaintiff Motions

The deadline for filing lead plaintiff motions in the DLocal class action lawsuit is December 5, 2023. Investors who suffered losses in DLocal securities during the class period must submit their motions to the court by this date to be considered for the lead plaintiff role.

Final Hearing and Settlement Process

After the lead plaintiff deadline, if there is a settlement, the court will hold a final hearing to determine whether to approve any potential settlement reached in the DLocal class action lawsuit. The court-approved settlement will outline the compensation and benefits available to participating class members. The settlement process may take several months, depending on the presence of objections or appeals.

Potential Compensation for Class Members

In the event of a settlement in the DLocal class action lawsuit, class members may be entitled to compensation for their losses. The calculation of damages typically considers the difference between the price at which the securities were sold and the price that would have prevailed without the alleged fraudulent actions. The exact amount of compensation will depend on the court-approved settlement and the individual losses suffered by class members.

Contingency Fee Basis and Cost

Most securities lawyers work on a contingency fee basis, meaning they only receive payment if there is a successful recovery for the class. Investors do not have to pay upfront attorney fees or court costs, as these expenses are typically covered by the attorney and reimbursed from any settlement or judgment recovery.

Conclusion

The DLocal class action lawsuit represents a significant legal case involving allegations of securities fraud. Investors who suffered losses in DLocal stock during the specified class period have the opportunity to participate in the lawsuit and potentially receive compensation for their damages. Hiring a reputable securities lawyer can provide guidance and support throughout the litigation process.

CONTACT A DLOCAL STOCK LOSS LAWYER TODAY IF YOU SUFFERED LOSSES IN DLOCAL STOCK ABOUT A DLOCAL CLASS ACTION LAWSUIT

​If you suffered losses in DLocal stock, contact DLocal stock loss lawyer Timothy L. Miles today for a free case evaluation about a DLocal class action lawsuit. Call today and see what a DLocal stock loss lawyer could do for you if you suffered losses in DLocal stock.

DLocal stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,  shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer of the South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.

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The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
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Brentwood, TN 37027