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Press release content from Globe Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from Globe Newswire
Press release content from Globe Newswire. The AP news staff was not involved in its creation.

Gainey McKenna & Egleston Announces A Class Action Lawsuit Has Been Filed Against PayPal ...

August 26, 2021 GMT

NEW YORK, Aug. 26, 2021 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against PayPal Holdings, Inc. (“PayPal” or the “Company”) (NASDAQ: PYPL) in the United States District Court for the Northern District of California on behalf of those who purchased or otherwise acquired PayPal publicly traded securities between February 9, 2017 through July 28, 2021, inclusive (the “Class Period”).

The Complaint alleges that Defendants made false and misleading statements and failed to disclose that: (1) the Company had deficient disclosure controls and procedures; (2) the Company’s practices regarding payment of interchange rates related to its debit cards were likewise non-complaint with applicable laws and/or regulations; (3) accordingly, the Company’s revenues derived from its PayPal Credit and debit card practices were in part the subject of improper conduct and thus unsustainable; (4) all the foregoing subjected the Company to an increased risk of regulatory investigation and enforcement; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.

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On July 29, 2021, the Company filed a quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission (“SEC”), reporting the Company’s financial and operating results for the second quarter of 2021. In its quarterly report, the Company disclosed investigations by the SEC and the Consumer Financial Protection Bureau (“CFPB”). PayPal disclosed its receipt of a Civil Investigative Demand from the CFPB related “to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services” and that the Company has “responded to subpoenas and requests for information received from the [SEC] relating to whether the interchange rates paid to bank that issues debits 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, the Company’s stock price fell $18.81 per share, or 6.23%, to close at $283.17 per share on July 29, 2021.

Investors who purchased or otherwise acquired shares of PayPal during the Class Period should contact the Firm prior to the October 19, 2021 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.  If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.

Please visit our website at http://www.gme-law.com for more information about the firm.