PayPal Holdings, Inc. Reminder: Kessler Topaz Meltzer & Check, LLP Reminds Investors of Securities Fraud Class Action Against PayPal Holdings, Inc.
RADNOR, Pa .– (COMMERCIAL THREAD) – Law firm Kessler Topaz Meltzer & Check, LLP announces that a securities fraud class action lawsuit has been filed against PayPal Holdings, Inc. (NASDAQ: PYPL) (“PayPal”) on behalf of those who have bought or acquired PayPal securities between February 9, 2017 and July 28, 2021, inclusive (the “Class Period”).
Investor Deadline Reminder: Investors Who Have Purchased or Acquired PayPal Securities during the Class Action Period may, no later than October 19, 2021, seek to be appointed as principal applicant representative of the group. For more information or to find out how to participate in this dispute, please contact Kessler Topaz Meltzer & Check, LLP: James Maro, Esq. (484) 270-1453; toll free at (844) 887-9500; by e-mail to [email protected]; Where Click on https://www.ktmc.com/paypal-class-action-lawsuit?utm_source=PR&utm_medium=link&utm_campaign=paypal
PayPal is a technology platform and digital payment company that enables digital and mobile payments on behalf of consumers and merchants around the world. PayPal’s services include PayPal Credit and some debit card services. In 2015, PayPal entered into a Stated Final Judgment and Consent Order (the “Consent Order”) with the Consumer Financial Protection Bureau (“CFPB”), settling regulatory claims arising from PayPal’s credit practices between 2011 and 2015. The consent order required PayPal to pay consumers $ 15 million in damages and a civil monetary fine of $ 10 million. The Consent Order also required PayPal to make various changes to PayPal credit disclosures and associated business practices.
The Recourse Period begins February 9, 2017, the day after PayPal files an annual report on Form 10-K with the United States Securities and Exchange Commission (“SEC”), outlining financial and operating results. of the company for the quarter and fiscal year ended in December. December 31, 2016 (the “2016 10-K”). Regarding PayPal’s disclosure controls and procedures, the 2016 10-K reported that “[b]on the evaluation of our disclosure controls and procedures (as defined in rules 13a-15 (e) and 15d-15 (e) under the [Exchange Act]), [the defendants] concluded that as of December 31, 2016, the end of the reporting period, our disclosure controls and procedures were effective. The 2016 10-K aimed to educate investors about PayPal’s regulatory obligations and associated risks, while simultaneously assuring investors of PayPal’s “compliant solutions” to address those risks. Regarding the consent order, the 2016 10-K stated, in the relevant part, that “[w]We continue to cooperate and collaborate with the CFPB and ensure compliance with the Consent Order, which “required PayPal to make various changes to PayPal credit disclosures and associated business practices.”
Throughout the Class Period, the defendants continued to assert the effectiveness of PayPal’s disclosure controls and procedures; supposed to advise investors on PayPal’s regulatory obligations, associated risks and “compliant solutions” to deal with those risks; has repeatedly stated that it is remedying problems with its PayPal credit business practices in accordance with the Consent Order; and minimized regulations and related issues regarding PayPal’s interchange rates.
The truth came to light on July 29, 2021, when PayPal filed a quarterly report on Form 10-Q, showing PayPal’s financial and operating results for the second quarter of 2021. In it, PayPal disclosed the investigations of the SEC and CFPB. 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 the compliance of the interchange rates paid to the bank that issues the debit cards bearing our licensed marks with Regulation II of the Board of Governors of the Federal Reserve System, and the reporting of marketing expenses generated by the program of company brand cards. ”
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.
The complaint alleges that, throughout the Class Period, the Defendants made false and / or misleading statements and / or failed to disclose that: (1) PayPal had deficient disclosure controls and procedures; (2) as a result, PayPal’s business practices regarding PayPal credit have remained non-compliant; (3) PayPal’s practices regarding the payment of interchange rates related to its debit cards were also inconsistent with applicable laws and / or regulations; (4) as a result, PayPal’s revenue from its PayPal credit and debit card practices was in part subject to inappropriate and therefore unsustainable conduct; (5) all of the above subject PayPal to increased risk of regulatory investigation and enforcement; and (6) accordingly, PayPal’s public statements were materially false and misleading at all material times.
Pay Pal investors can, no later than October 19, 2021, seek to be appointed as the lead representative of class claimants through Kessler Topaz Meltzer & Check, LLP, or another lawyer, or may choose to do nothing and remain an absent member of the class. A principal plaintiff is a representative party who acts on behalf of all class members in directing the litigation. In order to be named the Principal Plaintiff, the Court must determine that the Class Member’s claim is typical of the claims of other Class Members, and that the Class Member will adequately represent the Class. Your ability to participate in any recovery is not affected by the decision whether or not to serve as the principal applicant.
Kessler Topaz Meltzer & Check, LLP pursues class actions in state and federal courts across the country relating to securities fraud, breach of fiduciary duty, and other violations of state and federal law. Kessler Topaz Meltzer & Check, LLP is a driving force in corporate governance reform and has raised billions of dollars on behalf of institutional and individual investors in the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and participate in the recovery of government dollars). The complaint in this action was not filed by Kessler Topaz Meltzer & Check, LLP. For more information on Kessler Topaz Meltzer & Check, LLP, please visit www.ktmc.com.