PayPal Holdings, Inc. (2022)

Ticker: PYPL

Class Period Start: 02/03/2021

Class Period End: 02/01/2022

Registration Deadline: 12/05/2022

A securities class action has been filed in the USDC – NJ. against PayPal Holdings, Inc. (PYPL) on behalf of all persons or entities who purchased PayPal common stock between February 3, 2021 through February 1, 2022.  

PayPal operates one of the best-known digital payment platforms, enabling both merchants and consumers to make digital and mobile payments worldwide. Over 90% of the Company’s revenue is generated through fees on payment transactions.

The Complaint alleges that that throughout the Class Period, the defendants made materially false and/or misleading statements and failed to disclose material adverse factors about the Company’s business, operations—specifically the Company’s increased reliance on cash incentive campaigns for account creation that invited a deluge of illegitimate PayPal accounts that would boost PayPal’s numbers but would generate no revenue for the Company. Specifically, defendants misled investors and/or failed to disclose that:

  • defendants had inflated its vitally important NNA metric guidance through an usually large use of marketing campaigns that were easily susceptible to fraud;
  • defendants used these marketing campaigns and other incentives to hide the Company’s true churn rate and declining levels of engagement with the platform; and
  • as a result, defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and /or lacked a reasonable basis at all relevant times.When investors learned the truth about PayPal’s inflated NNA figures, the price of its common stock fell $43.23 per share in one day, dropping from a closing price of $175.80 per share on February 1, 2022 to close at $132.57 per share, on February 2, 2022, a one-day decline of approximately 25%.

If you suffered a loss on your investments or would like to inquire about joining an action to recover your loss under the federal securities laws, please complete the form below.

An attorney will contact you at no cost to provide you information about joining the action and answer your questions. Please note that submission of this form does not by itself form an attorney-client relationship nor does filing out this form mean you have joined any lawsuit.

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