Notice is hereby given that a class action lawsuit has been filed on behalf of those who: (1) purchased or otherwise acquired eBay Inc. (“eBay”) securities on the open market on or after December 19, 2013 (NASDAQ: EBAY) and subsequently received PayPal securities pursuant to eBay’s spin-off of PayPal, effective as of July 17, 2015; and/or (2) purchased or otherwise acquired PayPal Holdings, Inc. (“PayPal”) (NASDAQ: PYPL) securities on the open market between July 20, 2015 and April 28, 2016, both dates inclusive (together the “Class Period”).
PayPal investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, PayPal, which was spun off from eBay in July 2015, operates as a technology platform company that enables digital and mobile payments on behalf of consumers and merchants worldwide. The company’s platform allows customers to pay and get paid, transfer and withdraw funds to their bank accounts, and hold balances in their PayPal accounts in various currencies. Between 2002 and 2015, PayPal operated as a subsidiary of eBay. EBay is a multinational e-commerce company providing consumer-to-consumer and business-to-consumer payment solutions via the internet. In 2013, PayPal acquired the payment service provider Braintree, owner of the mobile payment service Venmo. Describing itself as a “digital wallet,” Venmo is a mobile payment service that allows its users to transfer money to one another after providing Venmo with personal and bank account information necessary to create a user account.
According to the complaint, on April 28, 2016, post-market, PayPal filed a quarterly report on Form 10-Q stating, in relevant part, “On March 28, 2016, we received a Civil Investigative Demand (“CID”) from the Federal Trade Commission (“FTC”) as part of its investigation to determine whether we, through our Venmo service, have been or are engaged in deceptive or unfair practices in violation of the Federal Trade Commission Act.” Following this news, PayPal’s share price fell $0.89, or 2.22%, to close at $39.18 on April 29, 2016.
Then, on May 20, 2016, Texas Attorney General Ken Paxton announced a settlement with PayPal regarding Venmo, following an investigation for potential violations of the Texas Deceptive Trade Practices Act.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (i) PayPal’s Venmo service was engaged in unfair trade practices; (ii) the foregoing facts, when they became known, were likely to subject the company to increased regulatory scrutiny and/or affect the profitability of PayPal’s Venmo service; and (iii) as a result of the foregoing, PayPal’s public statements were materially false and misleading at all relevant times.
If you are a member of the class described above, you may no later than February 27, 2017 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at firstname.lastname@example.org.
Kessler Topaz Meltzer & Check, LLP
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