SAN DIEGO--(BUSINESS WIRE)--Robbins Geller Rudman & Dowd LLP announces that purchasers of PayPal Holdings, Inc. (NASDAQ: PYPL) securities between February 9, 2017 and July 28, 2021, inclusive (the “Class Period”), have until October 19, 2021 to seek appointment as lead plaintiff in the PayPal class action lawsuit. The PayPal class action lawsuit charges PayPal and certain of its top executives with violations of the Securities Exchange Act of 1934. The PayPal class action lawsuit (Kang v. PayPal Holdings, Inc., No. 21-cv-06468) was commenced on August 20, 2021 in the Northern District of California and is assigned to Judge Charles R. Breyer.
If you wish to serve as lead plaintiff of the PayPal class action lawsuit, please provide your information by clicking here. You can also contact attorney J.C. Sanchez of Robbins Geller by calling 800/449-4900 or via e-mail at jsanchez@rgrdlaw.com. Lead plaintiff motions for the PayPal class action lawsuit must be filed with the court no later than October 19, 2021.
CASE ALLEGATIONS: In 2015, PayPal settled regulatory claims with the Consumer Financial Protection Bureau (“CFPB”) arising from certain of its business practices related to PayPal Credit between 2011 and 2015. Following this incident, according to the PayPal class action lawsuit, PayPal repeatedly asserted that it was remediating issues with its PayPal Credit business practices in accordance with its 2015 settlement with the CFPB.
The PayPal class action lawsuit alleges that, throughout the Class Period, defendants made false and misleading statements and failed to disclose that: (i) PayPal had deficient disclosure controls and procedures; (ii) as a result, PayPal’s business practices with respect to PayPal Credit remained non-compliant with applicable laws and/or regulations; (iii) PayPal’s practices regarding payment of interchange rates related to its debit cards were likewise non-compliant with applicable laws and/or regulations; (iv) accordingly, PayPal’s revenues derived from its PayPal Credit and debit card practices were in part the subject of improper conduct and thus unsustainable; (v) this subjected PayPal to an increased risk of regulatory investigation and enforcement; and (vi) consequently, PayPal’s public statements were materially false and misleading at all relevant times.
On July 29, 2021, PayPal disclosed investigations by the U.S. Securities and Exchange Commission (“SEC”) and the CFPB. Specifically, PayPal disclosed receipt of a Civil Investigative Demand from the CFPB related “to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services”; and that PayPal has “responded to subpoenas and requests for information received from the [SEC] relating to whether the interchange rates paid to the bank that issues debit cards bearing our licensed brands were consistent with Regulation II of the Board of Governors of the Federal Reserve System, and to the reporting of marketing fees earned from the Company’s branded card program.” On this news, PayPal’s stock price fell more than 6%, damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased PayPal securities during the Class Period to seek appointment as lead plaintiff in the PayPal class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the PayPal class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the PayPal class action lawsuit. An investor’s ability to share in any potential future recovery of the PayPal class action lawsuit is not dependent upon serving as lead plaintiff.
ABOUT ROBBINS GELLER RUDMAN & DOWD LLP: With 200 lawyers in 9 offices nationwide, Robbins Geller Rudman & Dowd LLP is the largest U.S. law firm representing investors in securities class actions. Robbins Geller attorneys have obtained many of the largest shareholder recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. The 2020 ISS Securities Class Action Services Top 50 Report ranked Robbins Geller first for recovering $1.6 billion for investors last year, more than double the amount recovered by any other securities plaintiffs’ firm. Please visit http://www.rgrdlaw.com for more information.
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