(Reuters) -Hedge fund Muddy Waters (NYSE:) repeated its stance that Uruguayan funds agency dLocal’s (O:) books confirmed quite a few discrepancies, including in a notice Thursday it was “extra satisfied than earlier than” that dLocal had used consumer funds to pay a particular dividend to its shareholders from earlier than its preliminary public providing (IPO).
For the reason that allegations from Muddy Waters final month, dLocal has held calls with purchasers from a number of banks, Muddy Waters mentioned. JP Morgan mentioned in a notice following its name that dLocal careworn it had separated consumer funds from its personal.
Muddy Waters mentioned dLocal’s calls with purchasers have been “non-specific” and “sweet-talking,” and that “all (dLocal) wanted to do to deal with this difficulty was present a proof as to how the money flows reconcile.”
Dlocal didn’t instantly reply to a request for remark, however has beforehand denied the Muddy Waters report. It mentioned final month it might “rebut the allegations within the acceptable discussion board in the end.”
Shares in dLocal on the Nasdaq have been down 15% Thursday afternoon, having dropped practically 50% since Muddy Waters first launched its report in mid-November.
Muddy Waters shorted the funds agency final month, alleging “issues in regards to the management of consumer funds” and noting a multi-million deficit within the firm’s 2020 money flows and service provider funds-related accounts.
Muddy Waters additionally repeated that dLocal’s books confirmed numerous different discrepancies, which dLocal “ought to substantively handle in writing.”
The allegations from the hedge fund come as its founder, Carson Block, is dealing with a Justice Division probe as a part of an investigation into short-sellers and hedge funds on suspected coordinated manipulative buying and selling.