SAN FRANCISCO–(BUSINESS WIRE)–National plaintiffs’ law firm Lieff Cabraser Heimann & Bernstein, LLP recommends PayPal Holdings, Inc. (“PayPal”) (NASDAQ: PYPL) to investors who have suffered losses between February 3, 2021 and February 1, 2022 contact our attorneys immediately regarding the pending securities fraud class action lawsuit against PayPal. The deadline for submitting an application as a principal applicant is December 5, 2022.
Class period: February 3, 2021 – February 1, 2022
Lead Applicant Application Deadline: December 5, 2022
Case information: https://www.lieffcabraser.com/securities/PayPal/
Contact us: Email or text [email protected] or call 1-800-541-7358
The securities class action alleges that PayPal made materially false and misleading statements and omissions about the growth of its new net asset (“NNA”) account count and that the metric was an important indicator of the company’s performance. . PayPal collects fees from each payment transaction, and therefore the more active account holders it has, the more revenue it can generate.
However, PayPal did not disclose that millions of new accounts generated by the company’s cash-incentive marketing program, which boosted its NNA numbers, were fraudulent accounts.
The truth was revealed on February 1, 2022, when PayPal reported disappointing fourth quarter and full year 2021 results, and revealed that 4.5 million accounts had been created illegitimately. PayPal cut its forecast for NNAs and said it would focus on increasing its active user engagement, which would reduce its ability to sustain growth in its NNA numbers. On this news, PayPal’s common stock price fell $43.23 per share, or 24.59%, from its closing price of $175.80 per share on February 1, 2022, to close at 132. $.57 on February 2, 2022, on unusually high trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with more than 100 attorneys in offices in San Francisco, New York, Nashville and Munich, Germany, is an internationally recognized law firm committed to advancing investor rights and promoting corporate responsibility. Recognized as a “Claimants Central” by Law360, Lieff Cabraser has litigated some of the largest civil cases in the United States and helped clients recover over $124 billion in verdicts and settlements. Lieff Cabraser is committed to ensuring access to justice for all.