NEW YORK, September 13, 2021 / PRNewswire / – Pomerantz LLP announces that a class action lawsuit has been filed against PayPal Holdings, Inc. (âPayPalâ or the âCompanyâ) (NASDAQ: PYPL) and certain of its officers. The class action, filed in United States District Court of the North District of California, and listed as 21-cv-06468, is in the name of a class consisting of all persons and entities other than Defendants who have purchased or otherwise acquired PayPal securities between Feb. 9, 2017 and July 28, 2021, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants in violation of federal securities laws and to pursue remedies under Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934 (the âExchange Actâ) and rules 10b-5 promulgated by virtue of it, against the Company and certain of its senior executives.
If you are a shareholder who purchased or otherwise acquired PayPal securities during the Class Period, you have up to October 19, 2021 ask the court to appoint you as the principal plaintiff for the group. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll free, Ext. 7980. Those inquiring by e-mail are encouraged to provide their mailing address, telephone number and the number of shares purchased.
[Click here for information about joining the class action]
PayPal operates as a technology platform and digital payment company that enables digital and mobile payments on behalf of consumers and merchants around the world. The Company’s services include, among others, PayPal Credit and certain debit card services. PayPal Credit is an open (revolving) credit card account that provides a reusable line of credit integrated into a consumer’s account with PayPal.
In 2015, PayPal settled regulatory claims with the Consumer Financial Protection Bureau (âCFPBâ) arising from some of its PayPal credit-related business practices between 2011 and 2015. Following this incident, the Company has repeatedly asserted that she was fixing the problems with her PayPal account. Credit trade practices in accordance with its 2015 regulations with the CFPB.
The complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading representations regarding the Company’s business, operational and compliance policies. Specifically, the Defendants made false and / or misleading statements and / or failed to disclose that: (i) PayPal had deficient disclosure controls and procedures; (ii) as a result, PayPal’s business practices regarding PayPal Credit have remained inconsistent with applicable laws and / or regulations; (iii) PayPal’s practices regarding the payment of interchange rates related to its debit cards were also inconsistent with applicable laws and / or regulations; (iv) as a result, PayPal’s revenue from its PayPal credit and debit card practices was in part subject to inappropriate and therefore unsustainable conduct; (v) all of the foregoing has placed the Company at increased risk of regulatory investigation and enforcement; and (vi) accordingly, the Company’s public statements were materially false and misleading at all material times.
At July 29, 2021, PayPal has filed a quarterly report on Form 10-Q with the United States Securities and Exchange Commission (âSECâ), outlining the company’s financial and operating results for the second quarter of 2021. In its report Quarterly, PayPal disclosed investigations by the SEC and CFPB. Specifically, PayPal disclosed the receipt of a civil investigation request from the CFPB regarding “the marketing and use of PayPal credit in connection with certain merchants who provide educational services”; and that the Company has âresponded to subpoenas and requests for information received from the [SEC] regarding whether the interchange rates paid to the bank that issues debit cards bearing our licensed marks complied with Governing Council Regulation II of the Federal Reserve System, and the reporting of marketing received through the company’s branding card program. “
On this news, PayPal’s stock price fell $ 18.81 per share, or 6.23%, to close at $ 283.17 per share on July 29, 2021.
Pomerantz LLP, with offices in new York, Chicago, Los Angeles, Paris, and Tel Aviv, is recognized as one of the leading firms in the areas of corporate, securities and antitrust litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class actions bar, Pomerantz was a pioneer in the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breach of fiduciary duty and corporate misconduct. The firm has recovered numerous multi-million dollar damages on behalf of the members of the group. See www.pomlaw.com.
Robert S. Willoughby
888-476-6529 ext 7980
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SOURCE Pomerantz LLP