NEW YORK, August 24, 2021– (BUSINESS WIRE) – Bragar Eagel & Squire, PC, a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed against PayPal Holdings, Inc. ( “PayPal” or the “Company”) (NASDAQ: PYPL) in United States District Court for the Northern District of California on behalf of all persons and entities who purchased or otherwise acquired PayPal securities between February 9 2017 and July 28, 2021, both dates inclusive (the “Class Period”). Investors have until October 19, 2021 to ask the court to be named lead plaintiffs in the lawsuit.
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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 (“CFPB”) 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, operations 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 revenues from its PayPal credit and debit card practices were 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.
On July 29, 2021, PayPal filed a Quarterly Report on Form 10-Q with the United States Securities and Exchange Commission (“SEC”), outlining the Company’s financial and operating results for the second quarter of 2021. In its quarterly report, PayPal disclosed SEC and CFPB investigations. 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 “responded 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 generated by the Company’s branding card program. “
Following 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.
If you have purchased or acquired PayPal shares and suffered a loss, are a long-time shareholder, have any information, would like to learn more about these claims, or have questions regarding this announcement or your rights or interests in these matters, please contact Brandon Walker, Melissa Fortunato or Marion Passmore by e-mail at [email protected], by phone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation for you.
About Bragar Eagel & Squire, PC:
Bragar Eagel & Squire, PC is a nationally recognized law firm with offices in New York City, California and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivatives and other complex litigation in state and federal courts across the country. For more information about the company, please visit www.bespc.com. Lawyer advertising. Past results do not guarantee similar results.
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Bragar Eagel & Squire, PC
Brandon Walker, Esq.
Melissa Fortunato, Esq.
Marion Passmore, Esq.