INVESTOR DEADLINE: PayPal Holdings, Inc. Investors Suffering Substantial Losses Have Opportunity to File Class Action – PYPL
SAN DIEGO–(BUSINESS WIRE)–Robbins Geller Rudman & Dowd LLP announces that purchasers of common stock of PayPal Holdings, Inc. (NASDAQ: PYPL) between February 3, 2021 and February 1, 2022, both dates inclusive (the “Class Period”) have until December 5, 2022 to seek appointment as lead applicant in the PayPal class action. Subtitle Mid-Jersey Trucking Industry Defined Benefit Scheme and Teamsters Local 701 Pension and Annuity Fund v. PayPal Holdings, Inc.no. 22-cv-05864 (DNJ), the PayPal A class action lawsuit accuses PayPal and some of its senior executives of violating the Securities Exchange Act of 1934.
If you have suffered substantial losses and wish to act as the lead plaintiff of the PayPal class action, please provide your information here:
You can also contact the lawyer JC Sanchez of Robbins Geller by calling 800/449-4900 or emailing [email protected] Principal Applicant’s Requests for PayPal the class action must be filed with the court no later than December 5, 2022.
CASE ALLEGATIONS: The PayPal The class action alleges that PayPal, throughout the class period, touted the growth of its new net asset (“NNA”) accounts and asked investors to rate the strong growth in this metric as one of the most important indicators of PayPal’s performance.
But as the PayPal The class action lawsuit alleges that, while touting its NNA growth, PayPal failed to disclose that many of the additional users acquired through its cash account incentive campaigns were illusory because those incentive campaigns were easily likely to be fraudulent. Specifically, PayPal did not disclose that its cash incentive campaigns significantly increased PayPal’s susceptibility to bot farms that could systematically profit from PayPal’s $10.00 account opening by creating millions of accounts. illegitimate, which ultimately generated no future revenue for PayPal. Moreover, the PayPal The class action lawsuit alleges that investors were unaware of how long PayPal was going to keep inactive customers and fake bot accounts on the platform to avoid churn and inflate its NNA guidelines, which allegedly provided a more realistic view of the real demand for the PayPal platform.
On February 1, 2022, PayPal disclosed that its NNAs were only 49 million for 2021, lower than the 50 million forecast it originally provided in February 2021. In doing so, PayPal admitted that “as part of from the increased use of [cash] incentive campaigns throughout 2021, [PayPal] identified 4.5 million accounts that [PayPal] to believe[s] were illegitimately created,” and as a result, PayPal changed course on some of its customer acquisition strategies, including incentive campaigns in the fourth quarter. Additionally, as PayPal was evolving its customer acquisition and engagement strategy, PayPal was only expecting 15-20 million net new customer accounts by 2022 and PayPal “no longer believes[s] that the aspiration of 750 million accounts in the medium term [PayPal] set last year is appropriate. At this news, PayPal’s stock price fell about 25%, hurting investors.
THE PRINCIPAL APPLICANT PROCESS: The Private Securities Litigation Reform Act of 1995 allows any investor who purchased common stock of PayPal during the Class Period to seek appointment as lead plaintiff. A principal plaintiff is generally the plaintiff with the greatest financial interest in the relief sought by the putative class that is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members by directing the PayPal class action. The main plaintiff can select a law firm of his choice to plead PayPal class action. An investor’s ability to participate in any potential future takeover does not depend on its status as the lead claimant of the PayPal class action.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The firm is ranked No. 1 in the 2021 ISS Securities Class Action Services Top 50 report for recovering nearly $2 billion for investors last year alone, more than triple the amount recovered by any other firm from plaintiffs. With 200 attorneys in 9 offices, Robbins Geller is one of the largest plaintiffs firms in the world, and the firm’s attorneys have secured many of the largest securities class action recoveries in history, including the most largest ever-recorded securities class action recovery – $7.2 billion – in In re Enron Corp. Dry. Litigation Please visit the following page for more information:
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