Business
dLocal Refutes Short-Seller Report and Announces Share Buyback Program and Proposed Share Purchases by Key Shareholders
The Company, its Board of Directors and Audit Committee review short seller allegations and conclude key allegations are without merit Company share buyback
About this update from Dlocal Limited
[{"type":"text","content":" The Company, its Board of Directors and Audit Committee review short seller allegations and conclude key allegations are without merit Company share buyback program and proposed share purchases by General Atlantic, controlling shareholders and top management reflect confidence in dLocal’s business and long-term growth plans MONTEVIDEO, Uruguay, Dec. 20, 2022 (GLOBE NEWSWIRE) -- DLocal Limited (“dLocal,” the “Company,” “we,” “us,” and “our”) (Nasdaq: DLO), a technology-first payments platform enabling global enterprise merchants to connect with billions of consumers in emerging markets, today announced a response to allegations made in a report by short seller Muddy Waters Capital, dated November 16, 2022 (the “Report”), as well as a share buyback program and proposed share purchases by key shareholders and senior management team. We value corporate governance and transparency, and in that spirit have engaged in a thorough, fully resourced set of processes to review the short seller’s allegations. Our Board of Directors requested that management with the assistance of the Company’s professional advisors, including a global investigations and advisory services firm, conduct an internal review of the allegations made by the Report. In addition, our Audit Committee, consisting solely of independent directors, is conducting a review of the allegations in the Report with the assistance of independent counsel and an independent global expert services and forensic accounting advisory firm. That review is substantially complete. We will not engage in a tit-for-tat rebuttal of the numerous factual errors or inflammatory, misleading statements set forth in the Report, which collectively demonstrate a fundamental lack of understanding of our financial statements and business. However, based on the two separate reviews, we do wish to set the record straight with respect to the following: Client funds. We maintain separate bank accounts for merchant cash and our own cash. We have not used merchants’ cash to make loans to our senior leadership or to pay dividends to our shareholders. Additionally, the reviews verified that the amounts recorded on the Company’s balance sheet as own funds or merchant funds, respectively, were consistent with the balances reflected on bank statements of dLocal and its subsidiaries as of September 30, 2022, with ...