Cases
PayPal Holdings, Inc. (NASDAQ: PYPL)
Securities Class Action
Overview
Overview
- Date:
- 12/30/2016
- Company Name:
- PayPal Holdings, Inc.
- Stock Symbol:
- PYPL
- Class Period:
- FROM 7/17/2015 TO 4/28/2016
- Status:
- Closed/Complete
- Court:
- U.S. District Court: Northern California
NEW YORK, December 30, 2016 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the California Northern District Court on behalf of all persons or entities who acquired the PayPal Holdings, Inc. (NASDAQ: PYPL) securities between July 17, 2015 to April 28, 2016 (the “Class Period”).
PayPal, spun off from eBay in July 2015, is an American technology platform company running a worldwide online payments system that enables digital and mobile payments on behalf of consumers and merchants. Between 2002 and 2015, PayPal functioned as a subsidiary of eBay. eBay is an American multinational corporation and e-commerce company offering consumer-to-consumer and business-to-consumer payment solutions online.
In 2013, PayPal acquired Braintree, a payment service provider and holder of Venmo. Defining itself as a "digital wallet," Venmo is a mobile payment service that allows its users to transfer money to each other after setting up a personal Vebmo account and linking it to users' bank account.
On September 30, 2014, eBay publicized that it would spin off PayPal and its services, including Venmo, into a separate publicly traded company. The spin off was completed pursuant to which each holder of eBay common stock received one share of PayPal common stock for every share of eBay held at July 8, 2015's market close.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the its business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) PayPal's Venmo service was involved in unfair trade practices; (2) once the above facts were made public, it was likely to impact PayPal's profitability of its Venmo service and increase regulatory scrutiny; and (3) consequently, PayPal's public statements were materially false and misleading at all relevant times.
On April 28, 2016, PayPal Holdings Inc. announced that federal regulators are investigating its Venmo free peer-to-peer payment service in relation with possible unfair trade practices. PayPal received a civil investigative demand on March 28 from the Federal Trade Commission (the "FTC") for Venmo documents. The FTC review concentrates on whether PayPal, through Venmo, engaged in unfair or deceptive trade practices. The investigation "may result in substantial costs, including legal fees, fines, penalties and remediation expenses and actions and require us to change aspects of the manner in which we operate Venmo." Following this news, PayPal stock dropped $0.89 per share and closed at $39.18 on April 29, 2016.
If you acquired PayPal securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.
PayPal, spun off from eBay in July 2015, is an American technology platform company running a worldwide online payments system that enables digital and mobile payments on behalf of consumers and merchants. Between 2002 and 2015, PayPal functioned as a subsidiary of eBay. eBay is an American multinational corporation and e-commerce company offering consumer-to-consumer and business-to-consumer payment solutions online.
In 2013, PayPal acquired Braintree, a payment service provider and holder of Venmo. Defining itself as a "digital wallet," Venmo is a mobile payment service that allows its users to transfer money to each other after setting up a personal Vebmo account and linking it to users' bank account.
On September 30, 2014, eBay publicized that it would spin off PayPal and its services, including Venmo, into a separate publicly traded company. The spin off was completed pursuant to which each holder of eBay common stock received one share of PayPal common stock for every share of eBay held at July 8, 2015's market close.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the its business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) PayPal's Venmo service was involved in unfair trade practices; (2) once the above facts were made public, it was likely to impact PayPal's profitability of its Venmo service and increase regulatory scrutiny; and (3) consequently, PayPal's public statements were materially false and misleading at all relevant times.
On April 28, 2016, PayPal Holdings Inc. announced that federal regulators are investigating its Venmo free peer-to-peer payment service in relation with possible unfair trade practices. PayPal received a civil investigative demand on March 28 from the Federal Trade Commission (the "FTC") for Venmo documents. The FTC review concentrates on whether PayPal, through Venmo, engaged in unfair or deceptive trade practices. The investigation "may result in substantial costs, including legal fees, fines, penalties and remediation expenses and actions and require us to change aspects of the manner in which we operate Venmo." Following this news, PayPal stock dropped $0.89 per share and closed at $39.18 on April 29, 2016.
If you acquired PayPal securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.