The PayPal Holdings, Inc. securities fraud class action lawsuit was filed on behalf of those who purchased or otherwise acquired PayPal Holdings, Inc. (“PayPal”) (NASDAQ: PYPL) common stock between February 25, 2025, and February 2, 2026, inclusive (the “Class Period”). Captioned Goodman v. PayPal Holdings, Inc., et al, Case No. 3:26-cv-01381 (N.D. Cal.), the PayPal class action lawsuit alleges that PayPal and/or certain of its officers and/or directors violated federal securities laws by making false or misleading statements and/or omitted to disclose material information.
If you experienced losses as a result of your PayPal investment and want to find out more about this action and your rights, fill out the form on this page or contact attorney Jonathan Naji, Esq. of KTMC by calling (484) 270-1453 or via e-mail at info@ktmc.com.
CASE BACKGROUND:
PayPal is an international company that enables digital payments to simplify commerce experiences. PayPal operates a two-sided network, connecting merchants on the one hand to consumers on the other in order to facilitate shopping and the transfer of money securely online or in person through its Branded Checkout solutions, such as PayPal and Venmo, as well as through unbranded alternative offerings.
The Class Period begins on February 25, 2025, when PayPal conducted their annual Analyst/Investor Day call and provided an overview of PayPal’s recent and projected business. During the call, PayPal touted the company’s Branded Checkout segment and its overall growth into the next three fiscal cycles, including that “we've committed from guidance to grow greater than 5% in transaction margin and '25. As we look out into '27, we see high single-digit growth for transaction margin,” and that “we're raising the bar on branded checkout. We have an end-to-end plan to accelerate growth.”
On February 3, 2026, PayPal announced a surprise leadership change replacing the company’s CEO, noting in the announcement that “the pace of change and execution was not in line with the Board's expectations.” The leadership change coincided with PayPal’s fourth quarter and full year 2025 earnings report, wherein PayPal missed consensus estimates for both revenue and profit. PayPal further admitted that “execution has not been where it needs to be, particularly in branded checkout.” On this news, PayPal’s stock price fell $10.63, or 20.3%, to close at $41.70 per share on February 3, 2026.
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 PayPal’s business and operations. Specifically, Defendants created the false impression that they possessed reliable information pertaining to PayPal’s projected revenue outlook and anticipated growth while also minimizing risk from seasonality and macroeconomic fluctuations. In truth, PayPal’s optimistic plan for growth through various initiatives to bolster PayPal’s Branded Checkout offerings fell short of reality as the 2027 targets were not achievable under the tenure of PayPal’s CEO and required both an unrealistically stable consumer landscape and strong execution with clear direction from PayPal and its management.
THE LEAD PLAINTIFF PROCESS:
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired PayPal common stock during the Class Period to seek appointment as lead plaintiff in the PayPal class action lawsuit. 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. Filling out the online form above or communicating with any counsel is not necessary to participate or share in any recovery achieved in this case. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of his/her choice, or may choose to do nothing and remain an inactive class member.
ABOUT KESSLER TOPAZ MELTZER & CHECK, LLP:
Kessler Topaz Meltzer & Check, LLP (KTMC) is a leading U.S. plaintiff-side law firm focused on securities-fraud class actions and global investor protection. The firm represents individual investors as well as institutions, such as major pension funds, asset managers, and international investors. KTMC has led some of the largest recoveries in securities litigation and has been recognized by peers and the legal media with numerous accolades, including The National Law Journal’s Plaintiff’s Hot List and Trailblazers in Plaintiffs' Law, BTI Consulting Group’s Honor Roll of Most Feared Law Firms, The Legal Intelligencer’s Class Action Firm of the Year, Lawdragon’s Leading Plaintiff Financial Lawyers, and Law360’s Titans of the Plaintiffs Bar. The firm operates globally with offices in Pennsylvania and California.