New York's Appellate Division of the State Supreme Court has unanimously upheld the dismissal of a class action lawsuit against dLocal, a Uruguayan fintech specialising in payment processing across emerging markets, and the investment banks involved in its 2021 Nasdaq IPO. The suit, filed in 2023, alleged that dLocal's offering prospectus omitted material information about declining commission margins, with investors claiming share prices fell more than 50% once the full picture emerged — causing losses of hundreds of millions of dollars. The court found that plaintiffs failed to prove company executives had prior knowledge of that risk, and ruled that the shift toward local payments — which carry lower per-transaction fees but higher volume — had already been adequately disclosed in the prospectus and was not significant enough to have materially altered investor judgement.