NASDAQ:PYPL Long Term Shareholder Alert: Lawsuit Against Directors of PayPal Holdings, Inc. Filed
A lawsuit was filed by a current long term investor in PayPal Holdings, Inc. (NASDAQ:PYPL) shares over alleged breaches of fiduciary duty by certain directors.
San Diego, CA -- (SBWire) -- 05/20/2022 --An investor in shares of PayPal Holdings, Inc. (NASDAQ: PYPL) filed a lawsuit certain directors and officers of PayPal Holdings, Inc. over alleged breaches of fiduciary duties.
Investors who are current long term investors in PayPal Holdings, Inc. (NASDAQ: PYPL) shares, have certain options and should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
The plaintiff alleges that certain directors and officers of PayPal Holdings, Inc made false statements about the company's business practices that allegedly led to investigations by the U. S. Securities and Exchange Commission and the Consumer Financial Protection Bureau.
The plaintiff says that he filed the lawsuit because certain Defendants and the Board of Directors failed to maintain a reasonable reporting system concerning the adequacy of Company's financial reporting and the Company's compliance with applicable laws, both of which were (and are) mission critical to the Company's overall success.
In 2015, PayPal Holdings, Inc settled regulatory claims with the Consumer Financial Protection Bureau ("CFPB") concerning PayPal Credit business operations between 2011 and 2015. As a result, PayPal Holdings, Inc agreed to pay $15 million in reparations to consumers, a $10 million civil monetary penalty, and to modify its disclosure and related business practices.
Thereafter, PayPal Holdings, Inc assured investors that it rectified matters with its PayPal Credit business procedures in compliance with its 2015 CFPB settlement.
However, the plaintiff says that such disclosures were deficient and PayPal continued to downplay its regulatory issues.
On July 29, 2021, PayPal Holdings, Inc l filed a Form report that revealed Securities and Exchange Commission ("SEC") and CFPB investigations. Specifically, PayPal Holdings, Inc disclosed receipt of a Civil Investigative Demand ("CID") from the CFPB related "to the marketing and use of PayPal Credit in connection with certain merchants that provide educational services"; and that PayPal Holdings, Inc 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 [their] 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."
The plaintiff claims that as a result, from at least February 9, 2017 through July 29, 2021 (the "Relevant Period"), the Individual Defendants made materially false and misleading statements and failed to disclose that (i) PayPal failed to remedy and maintained inadequate disclosure protocols and controls; (ii) PayPal's business operations vis-à-vis PayPal Credit continued to be in violation of applicable laws and/or regulations; (iii) PayPal's practices concerning compensation of interchange rates linked to its debit cards were similarly in violation of applicable laws and/or regulations; (iv) PayPal's profits earned from its PayPal Credit and debit card practices were partly the result of inappropriate conduct, and were thus untenable; and (v) all of the aforementioned exposed PayPal to regulatory and enforcement scrutiny.
The plaintiff alleges that Defendants knowingly or recklessly breached fiduciary duties and caused other misconduct that substantially damaged the Company, and that the Defendants' wrongful conduct has subjected the Company to costly internal investigations, losses from the waste of corporate assets, losses due to the unjust enrichment of certain Defendants who were improperly over-compensated by the Company, and reputational harm, among other damages
Those who purchased shares of PayPal Holdings, Inc. (NASDAQ: PYPL) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
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