PayPal Holdings, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired PayPal Holdings, Inc. (“PayPal” or the “Company”) (NASDAQ: PYPL) securities from February 9, 2017 through July 28, 2021, inclusive (the “Class Period”). Investors have until October 19, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
PayPal operates as a technology platform and digital payments company that enables digital and mobile payments on behalf of consumers and merchants worldwide. Its payment solutions include PayPal, PayPal Credit, Braintree, Venmo, Xoom, Hyperwallet, and iZettle products.
On July 29, 2021, PayPal filed a quarterly report for the second quarter of 2021, which disclosed investigations by the U.S. Securities and Exchange Commission (“SEC”) and the Consumer Financial Protection Bureau (“CFPB”). 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.” PayPal also disclosed receipt of Civil Investigative Demands from the CFPB “related to Venmo’s unauthorized funds transfers and collections processes, and related matters” and “to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services.” On this news, the Company’s share price declined by $18.81 per share, or approximately 6.2%, from $301.98 per share to close at $283.17 per share on July 29, 2021.
The lawsuit alleges 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.
If you purchased or otherwise acquired PayPal securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.