Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Northern District of California on behalf of shareholders of PayPal Holdings, Inc. who purchased shares between February 9, 2017 and July 28, 2021.
PayPal and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On July 29, 2021, the Company disclosed receipt of a Civil Investigative Demand from the Consumer Financial Protection Bureau related “to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services.” Further, the Company revealed that it had “responded to subpoenas and requests for information received from the [Securities and Exchange Commission] 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, shares of PayPal plummeted $18.81 per share, or 6.23%, to close at $283.17 per share on July 29, 2021.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until October 19, 2021 to request that the court appoint them lead plaintiff.