Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired common stock shares of PayPal Holdings, Inc. (“PayPal” or the “Company”) (NASDAQ: PYPL) from February 3, 2021 through February 1, 2022, inclusive (the “Class Period”).
If you purchased PayPal common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than December 5, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
PayPal investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff complete the form below, text or email firstname.lastname@example.org, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
PayPal, headquartered in San Jose, California, is a digital and mobile payments platform that earns fees on payment transactions. In 2021, PayPal offered a $10 incentive to people who created new accounts on the platform.
The securities class action alleges that PayPal made materially false and misleading statements and omissions about the growth in the number of its net new active accounts (“NNAs”) and that the metric was an important indicator of the Company’s performance. PayPal earns a fee with each payment transaction, and therefore, the more active accountholders it has, the more revenues it could generate.
PayPal failed to disclose, however, that millions of the new accounts generated through the Company’s cash incentive marketing program, which increased its NNA numbers, were fraudulent accounts.
The truth was disclosed on February 1, 2022, when PayPal reported disappointing fourth quarter and full year results for 2021, and revealed that 4.5 million accounts were illegitimately created. Paypal reduced its forecast for NNAs and announced that it would focus on increasing the engagement of its active users, which would reduce its ability to maintain growth in its NNA figures. On this news, the price of PayPal common stock fell $43.23 per share, or 24.59%, from its closing price of $175.80 per share on February 1, 2022, to close at $132.57 on February 2, 2022, on unusually high trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $127 billion in verdicts and settlements. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.