A lawsuit was filed on behalf of investors in PayPal Holdings, Inc. (NASDAQ:PYPL) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/02/2021 -- An investor, who purchased shares of PayPal Holdings, Inc. (NASDAQ: PYPL), filed a lawsuit over alleged violations of Federal Securities Laws by PayPal Holdings, Inc. in connection with certain allegedly false and misleading statements made between February 9, 2017 and July 28, 2021.
Investors who purchased shares of PayPal Holdings, Inc. (NASDAQ: PYPL) have certain options and for certain investors are short and strict deadlines running. Deadline: October 19, 2021. NASDAQ: PYPL investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
In 2015, PayPal Holdings, Inc. settled regulatory claims with the Consumer Financial Protection Bureau ("CFPB") arising from certain of its business practices related to PayPal Credit between 2011 and 2015. Following this incident, the Company repeatedly asserted that it was remediating issues with its PayPal Credit business practices in accordance with its 2015 settlement with the CFPB.
On July 29, 2021, PayPal Holdings, Inc. filed a quarterly report 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, PayPal Holdings, Inc. disclosed investigations by the SEC and the CFPB. Specifically, PayPal Holdings, Inc. disclosed 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 the bank that issues debit 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."
Shares of PayPal Holdings, Inc. (NASDAQ: PYPL) declined from $310.16 per share on July 26, 2021, to $274.21 per share on July 30, 2021.
The plaintiff claims that between February 9, 2017 and July 28, 2021, the Defendants made false and/or misleading statements and/or failed to disclose that PayPal had deficient disclosure controls and procedures, that as a result, PayPal's business practices with respect to PayPal Credit remained non-compliant with applicable laws and/or regulations, that PayPal's practices regarding payment of interchange rates related to its debit cards were likewise non-compliant with applicable laws and/or regulations, that accordingly, PayPal's revenues derived from its PayPal Credit and debit card practices were in part the subject of improper conduct and thus unsustainable, that all the foregoing subjected the Company to an increased risk of regulatory investigation and enforcement, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of PayPal Holdings, Inc. (NASDAQ: PYPL) have certain options and should contact the Shareholders Foundation.
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