dLocal Limited Announces Dismissal of New York State Securities Class Action

dLocal (NASDAQ: DLO) announced that the Appellate Division, First Department of the Supreme Court of New York unanimously affirmed dismissal of the New York State securities class action on April 20, 2026.

Rhea-AI Summary

dLocal (NASDAQ: DLO) announced that the Appellate Division, First Department of the Supreme Court of New York unanimously affirmed dismissal of the New York State securities class action on April 20, 2026.

The court held claims against the company and individual defendants lacked merit, rejecting allegations about materially misleading IPO disclosures and noting the company’s consistent pre-IPO growth in TPV, revenue, and gross profit.

Positive

• Dismissal affirmed by Appellate Division, First Department (unanimous)
• Court found claims lacked merit against company and individual defendants
• Allegations rejected concerning misleading IPO disclosures about take rate
• Court noted company’s consistent pre-IPO growth in TPV, revenue, and gross profit

Negative

• None.

Argus Apr 20 session

-1.10% close to close Open Argus

Details

News Market Reaction – DLO

On Apr 20, the day this news came out, DLO closed 1.10% below the previous close.

Data tracked by StockTitan Argus for the Apr 20 session.

Market Context

This announcement highlights a complete legal win in New York, with the appellate court unanimously ...

Analysis

This announcement highlights a complete legal win in New York, with the appellate court unanimously affirming dismissal of all securities class action claims about DLocal’s offering documents. Prior filings emphasized strong growth in TPV, revenue, and profitability, but also risks from customer concentration, regulatory complexity, and emerging‑market exposure. Investors following this story may watch future earnings updates, disclosure quality, and any additional legal or regulatory developments alongside operating performance trends.

Historical Context

5 past events · Latest: Mar 31

5 events

1. Mar 31

   Earnings date set

   24h Move

   -4.1%

   Announced timing for 1Q26 financial results and investor webcast.

2. Mar 18

   Earnings results

   24h Move

   +9.4%

   Reported strong 4Q25 and 2025 growth with dividend and buyback plan.

3. Feb 24

   Crypto partnership

   24h Move

   -0.1%

   Announced stablecoin-based B2B cross-border payments partnership with Stable Sea.

4. Jan 26

   Earnings date set

   24h Move

   -1.3%

   Scheduled 4Q25 results release and conference call details.

5. Dec 23

   Board changes

   24h Move

   -0.6%

   Completed transition to majority independent board and created new committees.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

putative class action, registration statement, prospectus, take rate, +2 more

6 terms

putative class action regulatory

"affirmed the dismissal of the putative class action lawsuit captioned"

A putative class action is a lawsuit brought on behalf of a group of people who allege similar harm, filed before a court has formally approved that group as a legal 'class.' For investors it matters because, if the court later certifies the class, the company could face consolidated claims, larger damages and greater legal and reputational risk—like one small alarm that may turn into a building-wide evacuation if authorities confirm a shared problem.

registration statement regulatory

"alleged that the Company's registration statement and prospectus contained"

A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.

prospectus regulatory

"registration statement and prospectus contained materially misleading statements"

A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.

take rate financial

"relating to alleged trends in the Company's take rate."

Take rate is the share of a platform’s total transaction volume that the platform keeps as revenue, usually expressed as a percentage of the money that passes through it. Investors watch take rate because it shows how well a business converts activity into income — like a marketplace owner keeping a slice of every sale — and changes in the take rate can signal improving monetization, pricing power, or margin pressure.

total payment volume financial

"Company's consistent growth in total payment volume (TPV), revenue, and gross profit."

The total payment volume is the sum of all money that flows through a payment platform or service over a given period, including purchases, transfers, and other transactions. Like measuring the total gallons of water running through a pipe to gauge how busy it is, TPV shows how much business a payments provider or marketplace handles and helps investors assess scale, growth, market share and potential fee-based revenue.

gross profit financial

"growth in total payment volume (TPV), revenue, and gross profit."

Gross profit is the amount a business keeps from sales after subtracting the direct costs to make or buy the products or services sold — like the money left from a lemonade stand after paying for lemons, sugar and cups. Investors watch gross profit to judge how well a company’s core operations and pricing cover those direct costs, revealing its basic profitability and whether margins are improving or shrinking over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MONTEVIDEO, Uruguay, April 20, 2026 (GLOBE NEWSWIRE) -- DLocal Limited (NASDAQ: DLO, “dLocal” or the “Company”), a leading cross-border financial infrastructure platform connecting global merchants to emerging markets, today announced that the Supreme Court of the State of New York, Appellate Division, First Department, has unanimously affirmed the dismissal of the putative class action lawsuit captioned In the Matter of DLocal Securities Litigation, Index No. 151778/23 (the “New York State Action”). The Supreme Court, New York County had previously granted the defendants’ motion to dismiss the complaint in its entirety, and the Appellate Division has now unanimously upheld that decision.

In its unanimous decision, the Appellate Division held that all claims against the Company and the individual defendants lacked merit.

The New York State Action had alleged that the Company's registration statement and prospectus contained materially misleading statements and omissions relating to alleged trends in the Company's take rate. The Court rejected these allegations, finding that the plaintiffs did not identify a known material trend, especially in light of the Company's consistent growth in total payment volume (TPV), revenue, and gross profit.

Pedro Arnt, Chief Executive Officer of dLocal, stated: “We are pleased that the Appellate Division unanimously affirmed the complete dismissal of this case in a decision that recognizes the strength of the Company’s disclosures, the growth of our total payment volume, revenue and gross profit in the pre-IPO period, and the merits of our position. As always, we remain focused on executing our strategy and delivering value to our merchants, shareholders, and the communities we serve across emerging markets; not on the distractions generated by inaccurate allegations.”

About dLocal
dLocal builds financial infrastructure for markets of the future, connecting global enterprises with local payment cultures across high-growth markets in Africa, Asia, the Middle East, and Latin America. Through the "One dLocal" concept (one direct API, one platform, and one contract), global companies can accept payments, send payouts, and settle funds globally without the need to manage multiple local entities and integrations. For more information, visit www.dlocal.com.

Forward Looking Statements
This press release contains certain forward-looking statements. These forward-looking statements convey dLocal’s current expectations or forecasts of future events. Forward-looking statements regarding dLocal involve known and unknown risks, uncertainties and other factors that may cause dLocal’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors,” and “Cautionary Note Regarding Forward-Looking Statements” sections of dLocal’s filings with the U.S. Securities and Exchange Commission. Unless required by law, dLocal undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date hereof.

Investor Relations Contact:
investor@dlocal.com

Media Contact:
media@dlocal.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did the April 20, 2026 Appellate Division decision mean for dLocal (NASDAQ: DLO)?

The Appellate Division unanimously affirmed dismissal of the New York State securities class action. According to the company, the court held all claims lacked merit and rejected allegations about misleading IPO disclosures, citing consistent pre-IPO growth in TPV, revenue, and gross profit.

Did the New York court rule that dLocal’s registration statement was misleading in 2026?

No, the court rejected allegations that the registration statement was materially misleading. According to the company, the Appellate Division found plaintiffs failed to identify a known material trend and upheld dismissal of all claims.

Which court affirmed the dismissal of the DLO securities class action on April 20, 2026?

The Appellate Division, First Department of the Supreme Court of the State of New York affirmed dismissal. According to the company, the decision was unanimous and upheld the prior New York County court dismissal in full.

How did the court view dLocal’s financial trends referenced in the lawsuit?

The court found plaintiffs did not identify a known material adverse trend in the company’s metrics. According to the company, the court cited consistent growth in total payment volume, revenue, and gross profit in the pre-IPO period.

What is the likely shareholder impact of the April 20, 2026 dismissal for dLocal (DLO)?

The dismissal removes a legal overhang related to the New York State securities suit. According to the company, the unanimous decision affirms disclosures and may reduce litigation uncertainty for shareholders going forward.