PayPal Holdings Class Action Lawsuit (PYPL Lawsuit)
What Is The PayPal Holdings Class Action Lawsuit About?
The Paypal Holdings Limited Class Action Lawsuit (NASDAQ: PYPL) (PayPal Holdings Class Action Lawsuit) was filed when after the market closed on February 1, 2022 when PayPal reported disappointing fourth quarter and full year 2021 results. Specifically, PayPal reported that its NNAs were only 49 million for 2021, less than the guidance of 50 million it initially provided in February 2021.
Is There a PayPal Holdings Class Action Lawsuit?
PYPL:NASDAQ Class Action Lawsuit (PayPal Holdings Inc.) was filed on October 4, 2022 on behalf of shareholders. The lawsuit was filed because on February 1, 2022 when PayPal reported disappointing fourth quarter and full year 2021 results. Specifically, PayPal reported that its NNAs were only 49 million for 2021, less than the guidance of 50 million it initially provided in February 2021.
The Company admitted that “in connection with the increased use of cash incentive campaigns throughout 2021, [it] identified 4.5 million accounts that “it” believes(s) were illegitimately created,” and that as a result the Company changed course on some of its customer acquisition strategies including incentive-led campaigns in the fourth quarter.
Unbeknownst to investors, the Company was only reporting the hyper-growth in NNAs the Company’s unusually heavy reliance on marketing campaigns that were easily targeted by fraudulent actors who were not really active or profitable to the Company.
On these shocking disclosures, PayPal’s stock price fell $43.23, or 25% in one-day, to close at $132.57 per share on February 2, 2022 – representing a $62 billion drop in market capitalization.
Is There A Deadline For The PYPL Lawsuit?
How Much Did Shareholders Lose In PYPL Stock?
Shareholders who held PayPal Holding Inc. securities saw the Company’s PayPal’s stock price fell $43.23, or 25% in one-day, to close at $132.57 per share on February 2, 2022 – representing a $62 billion drop in market capitalization.
What Is The Paypal Holdings Lawsuit Complaint?
Levi & Korsinsky, LLP announces that a PYPL class action lawsuit (PayPal Holdings Class Action Lawsuit) has been filed on behalf of investors who purchased PayPal Holdings (PYPL) securities between February 3, 2021 and February 1, 2022. For more on the PYPL Lawsuit please contact us today.
According to the PayPal Holdings lawsuit, throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that:
(1) Defendants had inflated its vitally important NNA metric guidance through an usually large use of marketing campaigns that were easily susceptible to fraud; i.e. the creation of millions of illegitimate accounts which were created for the sole purpose of taking advantage of cash incentives for account creation;
(2) Defendants used these marketing campaigns and other incentives to hide the Company’s true churn rate and declining levels of engagement with the platform;
(3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and misleading and /or lacked a reasonable basis at all relevant times.
If you suffered a loss in PayPal Holdings you have until December 5, 2022 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Why Levi & Korsinsky, LLP Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services’ Top 50 Report as one of the top securities litigation firms in the United States.
What Is The Lead Plaintiff Process?
THE LEAD PLAINTIFF PROCESS: According to the Private Securities Reform Act of 1995, any investor who bought or acquired PayPal Holdings securities in the Class Period may apply for appointment as a lead plaintiff. The lead plaintiff is usually the movant who has the most financial interest in the relief sought. However, he or she must also be typical or adequate to the putative classes. The PayPal Holdings class-action lawsuit is directed by the lead plaintiff. To litigate the PayPal Holdings Class Action Lawsuit, the lead plaintiff may choose any law firm it wishes. The ability of an investor to share in any future recovery is not tied to being the lead plaintiff in the PayPal Holdings Class Action Lawsuit.
What Does PYPL Do?
PayPal Holdings, Inc. operates a technology platform that enables digital payments on behalf of merchants and consumers worldwide.
It provides payment solutions under the PayPal, PayPal Credit, Braintree, Venmo, Xoom, Zettle, Hyperwallet, Honey, and Paidy names.
The company’s payments platform allows consumers to send and receive payments in approximately 200 markets and in approximately 100 currencies, withdraw funds to their bank accounts in 56 currencies, and hold balances in their PayPal accounts in 25 currencies.
PayPal Holdings, Inc. was founded in 1998 and is headquartered in San Jose, California.
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