KEY POINTS
- The New York State Supreme Court upheld the dismissal of a lawsuit alleging dLocal omitted material facts in its 2021 IPO prospectus.
- Judges ruled that the company had adequately disclosed its shift toward local payment processing and found no evidence of intent to deceive investors.
- CEO Pedro Arnt emphasized that the ruling allows the firm to focus on its emerging market growth strategy without the distraction of inaccurate legal claims.
The Appellate Division of the New York State Supreme Court has unanimously upheld the dismissal of a class action lawsuit filed by investors against the Uruguayan fintech company dLocal and the investment banks that facilitated its 2021 initial public offering. The ruling, issued on April 21, 2026, confirms that the company did not omit material information in its prospectus regarding commission margins, effectively closing a legal challenge that has persisted since 2023.
As reported by MercoPress, the litigation was originally brought by the law firm Bragar Eagel & Squire on behalf of shareholders who claimed they suffered significant losses after dLocal’s share price dropped. The plaintiffs alleged that the company had failed to disclose a projected decline in commission margins; however, the court found that the plaintiffs failed to prove the company’s executives had actual knowledge of such risks at the time of the offering.
The judicial panel highlighted that key performance indicators—including total payment volume, revenue, and gross profit—showed consistent growth both before and after the company listed on the Nasdaq. Furthermore, the judges determined that the transition toward local payment processing, which typically involves lower margins but higher volumes, had been adequately explained in the company’s prospectus as a core component of its growth strategy.
In a statement following the decision, dLocal CEO Pedro Arnt noted that the ruling recognizes the transparency and strength of the information disclosed during the company’s listing process. Arnt stated that the firm remains focused on executing its strategy and delivering value to merchants and shareholders across emerging markets, dismissing the legal claims as distractions based on inaccurate allegations.
Strategic Market Assessment
The resolution of this legal dispute in the United States provides a significant boost to the perceived legal security and corporate governance standards of Uruguay’s technology sector. For international investors and expats involved in the Uruguayan market, this victory for dLocal—the country’s first “unicorn”—serves as a testament to the resilience of local firms operating under the scrutiny of global financial regulators. The dismissal of these claims reduces the risk profile for Uruguayan fintech exports and reinforces the nation’s status as a stable and transparent hub for digital investment. This outcome is likely to stabilize investor sentiment regarding Uruguayan ADRs and may encourage further venture capital inflows into the country’s burgeoning tech ecosystem, as it demonstrates that Uruguayan entities can successfully navigate high-stakes litigation in major international jurisdictions.
It is important to note that these are allegations, and the parties involved are presumed innocent until proven guilty under Uruguayan law.
